Prominent Nigerian investor and Managing Partner of Aruwa Capital Management, Adesuwa Okunbo Rhodes, has called on African entrepreneurs to rethink their approach to investment negotiations, emphasising the importance of strategic alignment over initial valuation and equity considerations.
Rhodes, a leading voice in Africa’s private equity and venture capital space, shared insights from ongoing deal negotiations, revealing that discussions with founders often revolve heavily around valuation metrics and equity stakes. However, she stressed that such a narrow focus may obscure the broader value that the right investment partner can deliver.
According to her, while financial considerations remain important, they represent only a fraction of what determines long-term business success. She noted that Aruwa Capital Management’s portfolio of 15 companies offers more than capital, serving as a network of potential customers, distribution partners, co-manufacturers, and market entry channels for investee businesses.
Beyond its portfolio, Rhodes highlighted the firm’s positioning within a wider ecosystem that includes global foundations and development finance institutions (DFIs), many of which provide technical assistance grants and actively seek co-investment opportunities in African small and medium-sized enterprises (SMEs). This network, she explained, can significantly accelerate business growth and market access for founders.
“The right partnership doesn’t just bring capital; it opens doors to an ecosystem that many founders spend years trying to access,” she noted, underscoring the multiplier effect of strategic investor relationships.
Rhodes further distinguished between what she described as “arithmetic dilution” and “exponential ecosystem access,” arguing that founders who succeed in the long term are those who look beyond immediate equity concessions and instead focus on the value their investors bring to the table.
She advised entrepreneurs currently in negotiations to adopt a broader perspective, urging them to assess not just the financial terms of a deal, but also the strategic alignment and long-term vision shared with potential investors.
“The number is not the deal. The alignment is the deal,” she stated, adding that while founders should remain mindful of equity stakes, selecting the right partner is ultimately more critical to sustainable growth.
Her remarks come at a time when African startups continue to navigate a challenging funding environment, making strategic partnerships and access to supportive ecosystems increasingly vital for scaling and resilience.
Rhodes concluded by encouraging founders to move away from a scarcity mindset focused on preserving ownership percentages, and instead embrace an abundance mindset that prioritises partnerships capable of enhancing enterprise value over time.
Industry observers say her perspective reflects a growing shift within Africa’s investment landscape, where value creation, collaboration, and ecosystem leverage are becoming as important as capital injection in driving entrepreneurial success.