Great resource by Infodev (PDF) for African startups trying to understand where they fit into the investment chasm:

Evidence suggests the existence of a financing gap for transactions worth up to $500,000, with more severe problems for ventures seeking up to $100,000. Problems in accessing finance are much less severe for transactions exceeding the $500,000 benchmark. Financing needs above this level are typically voiced by enterprises that have already been in operation for some time, and there are several sources of funding that can be tapped.

This is the high-risk, high yield primordial pool (most) African startups are swimming in right now. Typical investors don’t want to wade into this murky soup fishing for gems they can finance.

Unfortunately, this is where all the action is right now.

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