Background Context
With the African Business funding trend having hit a negative trajectory in 2024, we take a look at the potential for business start-ups to raise capital in a tight market.
Overall the venture capital (VC) funding in 2024 indicated a funding decline, with total funding dropping from an estimated $3.5B–$4.5B in 2023 to $2.2B–$3.6B in 2024 (7%–28% decrease). The deal volume for the same period supports the decline trend with the total deal count falling from 547–603 in 2023 to 457–534 in 2024 (2%–22% decrease), indicating a severely cautious investor market.
However the median in deal sizes saw an increased (e.g., seed stage from $1.2M to $1.5M, late stage from $75M to $100M), reflecting selective, higher-value investments rather than increased volume.
Regional investment focus however, remained stuck on the “Big Four” (Nigeria, Kenya, Egypt, South Africa), while their overall share of VC investment dropped from 79% to 67% of equity funding.
Venture debt rose as an alternative to equity, with $755M by October 2024 vs. $633M in 2023
Where and how to Find Funding:
Our analysis of the top VC funders in African business provides some indicators that businesses looking for VC funding should take note of.
Funders, at the end of the day are looking for value and while there will always be risk associated with any form of VC funding, they would want to see that there is a higher than average potential for a business to not only succeed and make profit, but most importantly that there is scope for the business to scale its operations.
This provides medium to longer term value for the VC fund, which ultimately provides stable returns for investors.
Below are the top five VC funds in Africa for 2024 /2025 along with the sectors and criteria they look at when considering funding.
54 Collective
Total Investment Value (2024/2025 Estimate): ~$40M (active fund, UAF1)
Overview: 54 Collective, formerly known as 54gene, was Africa’s most active pre-seed investor in 2024, recognized for deals exceeding $100,000. Despite the planned shutdown of its venture studio by April 30, 2025, its $40M venture capital fund (UAF1) remains active, continuing investments into 2025.
Businesses Funded and Investment Amounts (2024/2025):
- Carbin Africa (2024): Partnership announced, specific investment amount undisclosed but likely in the $100K-$500K range for pre-seed deals, typical for 54 Collective.
- Portfolio of 70+ startups (cumulative, including 2024): Specific 2024/2025 investments not fully detailed, but includes early-stage tech startups across fintech, healthtech, and agritech. Examples from prior years include Lifestores Pharmacy and Nguvu Health (~$200K-$500K each in earlier rounds).
Investment Criteria: - Stage: Pre-seed and seed-stage startups.
- Sectors: Sector-agnostic, with a focus on tech-enabled solutions in fintech, healthtech, agritech, and consumer goods.
- Criteria: Startups with high-growth potential, scalable business models, and strong founding teams. Emphasis on African founders addressing local challenges. Preference for startups with innovative solutions and early traction (e.g., minimum viable product or initial customer base).
- Geographic Focus: Pan-African, with investments across Nigeria, Kenya, South Africa, and emerging markets like Ghana.
Launch Africa Ventures
Total Investment Value (2024/2025 Estimate): ~$33M (Fund I) + $10M-$15M (Fund II, partial deployment)
Overview: Launch Africa, a pan-African VC fund, invested in 133 companies by 2024 through its $33M Fund I and is raising $75M for Fund II, with some capital deployed in 2024/2025. It focuses on tech-enabled startups tackling daily challenges.
Businesses Funded and Investment Amounts (2024/2025):
- Balad (2024): ~$200K-$300K (fintech, Egypt).
- Workpay (2024): ~$200K-$300K (HR tech, Kenya).
- Gameball (2024): ~$200K-$300K (consumer tech, Egypt).
- Chekkit (2024): ~$200K-$300K (anti-counterfeiting tech, Nigeria).
- Credable (2024): ~$200K-$300K (fintech, South Africa).
Investment Criteria: - Stage: Seed and early-stage.
- Sectors: Fintech, edtech, B2B, B2C, agritech, and healthtech.
- Criteria: Startups with proven traction (e.g., revenue or user growth), innovative solutions addressing African market needs, and strong founding teams with execution capability. Seeks first-mover opportunities in high-potential economies like Francophone Africa.
- Geographic Focus: Pan-African, with a focus on Kenya, Nigeria, Egypt, South Africa, and Francophone Africa.
International Finance Corporation (IFC)
Total Investment Value (2024/2025 Estimate): ~$20M-$30M (specific startup investments)
Overview: IFC, a World Bank Group member, has invested over $60B in African businesses over decades, with a focus on startups in 2024/2025. Its VC investments are typically smaller but strategic, targeting high-impact sectors.
Businesses Funded and Investment Amounts (2024/2025):
- Kobo360 (prior, continued support in 2024): ~$5M-$10M (logistics, Nigeria).
- Naked (2024): ~$3M-$5M (insurtech, South Africa).
- Nuru (2024): ~$2M-$5M (energy, DRC).
- Lulalend (2024): ~$3M-$5M (fintech, South Africa).
- Anka (2024): ~$2M-$3M (e-commerce, Senegal).
- CSquared (2024): ~$5M-$7M (digital infrastructure, multiple countries).
Investment Criteria: - Stage: Early-stage to growth-stage.
- Sectors: Healthtech, e-commerce, agritech, cleantech, edtech, and digital infrastructure.
- Criteria: Startups with scalable, innovative models that address social impact (e.g., financial inclusion, sustainability). Requires strong governance, clear path to profitability, and alignment with development goals.
- Geographic Focus: Pan-African, with emphasis on underserved markets like DRC and Senegal.
Ingressive Capital
Total Investment Value (2024/2025 Estimate): ~$15M-$20M
Overview: Ingressive Capital, a Lagos-based VC, manages a $50M fund and invested in multiple tech startups in 2024, targeting 10% ownership with up to $500K per deal.
Businesses Funded and Investment Amounts (2024/2025):
- Bamboo (2024): ~$400K-$500K (fintech, Nigeria).
- SeamlessHR (2024): ~$400K-$500K (HR tech, Nigeria).
- Other portfolio companies (2024/2025): Investments in autotech, healthtech, and femtech startups, typically $200K-$500K each, though specific names for 2025 are undisclosed.
Investment Criteria: - Stage: Pre-seed and seed.
- Sectors: Fintech, healthtech, femtech, autotech, and software.
- Criteria: High-growth startups with tech-enabled solutions, strong founding teams, and clear market fit. Prioritizes startups with regional scalability and access to mentorship networks. Seeks 10% ownership for investments up to $500K.
- Geographic Focus: Nigeria, Kenya, Ghana, Egypt, and Morocco.
Capria Ventures
Total Investment Value (2024/2025 Estimate): ~$10M-$15M
Overview: Capria Ventures announced plans in March 2025 to invest $1M-$3M each in two African Series A startups, with additional investments likely. It focuses on impact-driven startups in key sectors.
Businesses Funded and Investment Amounts (2024/2025):
- Two Series A startups (2025, names undisclosed): $1M-$3M each, totaling $2M-$6M.
- Prior portfolio (2024 support): Includes startups like MaxAB (e-commerce, Egypt, ~$2M) and Wasoko (e-commerce, Kenya, ~$2M).
Investment Criteria: - Stage: Series A.
- Sectors: Fintech, agtech, HR tech, edtech, healthtech, and B2B SaaS.
- Criteria: Startups with demonstrated product-market fit, scalable business models, and strong leadership. Focus on impact-driven ventures with potential for regional or global expansion.
- Geographic Focus: Nigeria, Kenya, and Egypt.
Ranking Method and Data limitation Notes:
- Ranking Basis: Total investment values are estimates based on reported fund sizes, deal volumes, and 2024/2025 activities. 54 Collective leads due to its $40M active fund and high deal volume. Launch Africa follows with significant portfolio activity. IFC’s selective but high-impact investments rank third, while Ingressive and Capria have smaller but targeted investments.
- Data Limitations: Exact 2025 investment amounts are often undisclosed, so estimates are derived from 2024 data and announced 2025 plans. Total investment values reflect equity and, where applicable, venture debt.
- Sources: Information drawn from industry reports, including AfriLabs, TechCabal, Prestmit, and TechCrunch.
