Angel Investors in Africa Prefer to Invest in Scalable High-growth startups – Survey
For the third consecutive year, the African Business Angel Network (ABAN), supported by the Dutch Good Growth Fund (DGGF), Briter Bridges, and the African Angel Academy (AAA), released its latest Africa’s Angel Report.
This report combines primary and secondary data to provide insights into the role of angel investors in driving the growth of Africa’s innovation and investment ecosystem. Data collection involved surveying over 110 individual investors who have backed startups across Africa’s 54 nations, supplemented by interviews to gain further perspectives.
Angel investing in Africa spans diverse age groups, with 62% of surveyed investors aged 36 to 53, 21% aged 18 to 35, and an average age of 43. Although the ecosystem remains male-dominated (62%), women play an active role, particularly in the 40-49 age bracket (50%) and among founders (22%). Geographically, South Africa leads in angel investment activity (15%), followed by Nigeria (10%) and Kenya (8%). Regionally, West Africa claims the largest share (28%), with Southern and East Africa closely trailing at 25% each.
The majority of angels are highly educated, with 69% holding advanced degrees and 62% having studied outside Africa. Business (37%) and accounting/finance (16%) are the most common academic disciplines. Professionally, most angels have operational experience, with 33% identifying as founders or entrepreneurs, 25% as C-level executives, and 21% as investment professionals. Their commitment to Africa’s innovation ecosystem is evident, with 72% of respondents reporting investments in the past year.
Angels prefer scalable, revenue-generating ventures, particularly high-growth startups, which are favored by 43% of respondents. Most prioritize businesses that generate revenue from both companies and consumers (68%) and those with proven market traction, regardless of profitability (50%). There is also a strong focus on companies in urban areas (90%) and those with significant female representation in leadership, workforce, partnerships, or customer base (79%). However, businesses with overvalued shares or excessive equity dilution among founders are a concern for 73% of investors.
Investment instruments vary, with 50% of angels favoring equity investments through SAFEs or shareholder agreements, while 28% use debt instruments such as loans or convertible notes with short maturity periods. Investment accessibility is broad, as 64% of angels typically contribute between $1,000 and $25,000 per deal.
Angel funding predominantly supports young entrepreneurs aged 25 to 40, who make up 82% of recipients. The primary source of capital for these investments is angels’ wages and returns on their own investments (70%), with only a small proportion relying on external funds.
This year’s report underscores the critical role angel investors play in shaping Africa’s economic transformation. Through their support of high-growth ventures and a focus on innovation, these investors continue to empower the continent’s entrepreneurial ecosystem.
