Africa's venture capital VC ecosystem has entered a defining moment. Despite global headwinds and reduced liquidity, investors continue to back innovative startups solving critical challenges across the continent. The 2024 Venture Capital in Africa Report by the African Private Capital Association AVCA and fresh insights from Techpoint provide a comprehensive view of how funding flows are shifting, where opportunities lie, and what the future may hold for founders and investors alike.
A snapshot of 2024 venture capital activityAccording to AVCA's 2024 report, Africa recorded 487 deals, comprising 427 equity transactions and 60 venture debt deals. Yet, overall deal value and volume fell year-on-year - a 22 decline in value and 28 drop in volume compared to 2023.
Interestingly, the median equity round size increased to US2.5 million, highlighting a concentration of capital into fewer, more mature startups. Venture debt played a larger role too, making up 12 of deals but 37 of value, reflecting founders' growing appetite for non-dilutive capital.