The article discusses the impact of the "great market reset" on African startups, highlighting the decline in VC investments and the challenges faced by the tech ecosystem. The correction in venture capital activity, which began in the US and Europe, has affected funding for African startups and led to layoffs. However, there is optimism that the market has stabilized, and positive data points indicate a potential recovery.

The article mentions that Africa is influenced by global market trends, as most funding comes from outside the continent. The correction was triggered by recession fears, leading to a self-inflicted problem and a burst of the tech bubble. African startups are now refocusing on meeting market demands and building practical and realistic solutions.

VC funding for African startups has declined significantly, with a 57.2% drop in Q1 2023 compared to the same period in 2022. The "Big Four" countries (Nigeria, Kenya, South Africa, and Egypt) continue to be major drivers of capital but also experienced declines in funding. Global accelerators such as Y Combinator and Google Black Founders Fund have also reduced investments in Africa.

The article emphasizes the importance of revenue growth and profitability over lofty valuations. Startups should prioritize tangible financial outcomes and demonstrate practicality. It also highlights the potential of AI as a future area of exploration for African entrepreneurs, emphasizing the importance of leveraging African data and its role in shaping future products.

Overall, the market reset has posed challenges to the African tech ecosystem, but it also presents opportunities for growth and innovation. By learning from past cycles and focusing on practicality and revenue, the ecosystem can progress and achieve sustainable success.

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