From Venture Capital To Private Equity: What The New Global Exit Trend Means For African Tech

As global venture capital recalibrates and exits become harder to secure, a powerful trend is reshaping how technology scale-ups find growth partners: the rise of private equity as a dominant buyer of technology companies. While this shift has been accelerating in Europe and the United States, its implications for Africa are profound and potentially transformative.

A recent report by Clipperton, The Journey from Venture Capital to Private Equity: The 2025 Guide for Tech Startups , shows that the share of venture-backed firms sold to private equity funds has tripled since 2010, rising from 8 to 24. Software deals above 50 million are now overwhelmingly led by private equity, accounting for more than 80 of such transactions. As global private equity firms deploy record levels of uninvested capital, Africa's technology ecosystem stands at the edge of a new exit frontier.

African startups have long faced structural challenges in securing exits. IPO markets remain shallow, strategic buyers are limited, and acquisitions from foreign corporates often depend on navigating complex regulations and local market unfamiliarity.