Investors Activity in African Startups Declined in 2024, Overall Deal Activity Slowed Down
Investors activity in African startups is reported to have witnessed a significant decline in 2024, with fewer investors participating and overall deal activity slowing down.
The report by Africa: The Big Deal, revealed that only 520+ investors participated in at least one $100k+ deal in 2024, a significant drop from 610+ in 2023 and a drastic decline from 1,000+ in 2022. 69% of investors participated in only one $100k+ deal in 2024, the highest percentage in recent years.
Notably, the number of investors participating in more than ten $100k+ deals plummeted to just 8 in 2024. Focusing on the most active investors, we observe a similar trend: while there had been up to 28 investors participating in more than ten $100k+ deals on the continent in 2022, this number has fallen to 8 in 2024, in line with 2023.
According to the report, the most active investors last year saw 54 Collective leading the pack with 26 deals. Techstars, Launch Africa, and Catalyst Fund maintained their presence among top investors but with reduced deal activity. Digital Africa, Baobab Network, Renew Capital, and EdVentures increased their activity. Y Combinator, 500 Global, and Axian Group also made significant contributions.
While investor activity has slowed down in 2024, it’s crucial to avoid overstating the decline. A vibrant community of investors continues to support African startups, and the future of the ecosystem remains promising.
