Q3 2024 Venture Capital Activity in Africa

This report offers a detailed analysis of Africa's venture capital ecosystem, examining investment trends, regional dynamics, and sector-specific developments against the backdrop of global market movements

Key Findings

• Sharp Decline in VC Funding: African venture capital took a hit in 2024. Q3 saw only US$507mn across 108 deals, marking a steep drop in both deal volume and value. Year-to-date, funding stands at US$1.2bn across 313 deals.
• Late-Stage Deals Hit Hardest: Venture capital slowed across all stages, with late-stage investments most affected. Only two late-stage deals were closed by Q3 (down 71% YoY), highlighting increased scrutiny for mature startups.
• North Africa Leads in 2024 YTD: North Africa outperformed other regions with US$368mn raised across 78 deals, buoyed by significant rounds in Egypt’s financial services sector. This growth allowed it to surpass West Africa, typically the leader in African VC.
• AI and CleanTech Gain Ground: AI now accounts for 13% of venture capital funding in tech-enabled startups. This places it alongside CleanTech as a leading vertical as investors increasingly prioritize scalable, tech-driven solutions with sustainability at their core.
• Venture Debt Rises in Prominence: Venture debt has continued its steady rise as a key funding mechanism, with US$755mn raised across 40 deals in 2024 to date. The median deal value nearly doubled to US$9.5mn, underscoring the growing demand for larger, flexible debt financing options for African startups.