Our Correspondent | Africa Guardian
Africa’s startup ecosystem faced a challenging year in 2024, marked by a significant decline in investment activity. Reduced investor interest and participation compared to previous years underscored the difficulties entrepreneurs encountered in securing funding.
Key Highlights:
- Over 520 investors participated in at least one $100k+ deal in Africa in 2024.
- Leading investors included 54 Collective, Techstars, and Launch Africa.
- The reduced activity was attributed to investors focusing on raising new funds rather than abandoning the continent.
Africa remains a region of immense untapped potential, attracting global interest due to its youthful and rapidly growing population, expanding middle class, and abundant natural resources. With over half the population under 25, the continent offers a growing workforce and consumer base, opening opportunities across technology, education, healthcare, and retail.
Technology continues to drive Africa’s investment appeal. From mobile banking and fintech innovations revolutionizing financial services to flourishing sectors like e-commerce, renewable energy, and agribusiness, the continent presents opportunities for scalable and transformative businesses with long-term growth potential.
A Closer Look at 2024’s Investment Landscape
According to Africa: The Big Deal, a startup funding tracker, more than 520 investors engaged in at least one $100k+ deal in 2024, excluding grants and exits. This figure reflects a sharp decline compared to 2023, which saw over 610 investors, and an even steeper drop from 2022, when more than 1,000 investors participated—more than double the 2024 total.
The number of investors involved in more than ten $100k+ deals also decreased, from 28 in 2022 to just eight in 2024, continuing a downward trend from 2023.
Top 8 Investors of 2024
- 54 Collective: Leading the pack with 26 deals across Africa, the firm ranked third among the most active investors by mid-2024, with seven deals closed in the first half of the year.
- Techstars: Consistently among the top investors since 2021, Techstars secured the second spot with nine deals by mid-year.
- Launch Africa: The most active venture capital firm in H1 2024, completing 12 deals and securing third place overall.
- Catalyst Fund: Tied with 54 Collective for third place at mid-year with seven deals, Catalyst Fund maintained a strong presence in the ecosystem.
- Digital Africa: Demonstrated a notable increase in deal participation in 2024.
- Baobab Network: Recognized as a leading investor during H1 2024, showing significant growth in activity.
- Renew Capital: Made the list for the first time, tying with Catalyst Fund and 54 Collective for third place at mid-year.
- EdVentures: Contributed to Africa’s investment landscape with a rise in activity during 2024.
The Bigger Picture
The decline in investment activity does not indicate a withdrawal of investor interest in Africa. Instead, many investors paused their activity as they focused on raising new funds.
“Yes, there were fewer investors active on the continent last year, and the most active investors were not nearly as active as they once were, yet it would be a mistake to jump to the conclusion that investors have abandoned the continent,” noted the report.
Despite a challenging year, Africa’s untapped potential, coupled with its technological innovations and growing consumer base, ensures that the continent remains an attractive destination for investors seeking long-term growth opportunities.
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