Many African businesses struggle to attract institutional investors because they remain overly dependent on their founders rather than robust governance structures, according to Crimson Oak, a private capital and advisory firm that has launched a framework to assess companies’ investment readiness.
The firm said founder-led businesses across the continent often hit a growth ceiling because decision-making, operations and strategy are concentrated around a single individual instead of institutional systems that can outlive the founder.
To address the gap, Crimson Oak has introduced its Institutionalisation Index, an eight-pillar assessment framework that measures a company’s preparedness to absorb external capital, evaluating areas including financial discipline, governance, risk management and operational structures.
“The businesses that successfully attract long-term capital are those that can operate independently of their founders,” the firm said during its inaugural Founders’ Conclave in Lagos, where business owners, corporate advisers and strategy experts discussed the structural barriers limiting the growth
This post was originally published on this site.
