Q1 2025 Venture Capital Activity in Africa

Deal Volume Stabilises, but Still Below Norms: Africa recorded 116 deals in Q1 2025, down just 3% YoY. However, this figure remains 21% below the five-year average, indicating an ongoing but incomplete market recovery. 

Deal Value Bounces Back: Capital raised rose to US$0.6bn (up 26% YoY), driven by increased activity in the mid-size (US$5–10mn) and larger-ticket (US$20mn+) segments. 

Seed Deals Surge, Late-Stage Still Frozen: Seed-stage investment rose by a third in both volume and value, after nearly flatlining in Q1 2024. In contrast, late-stage rounds remained absent for the second consecutive first quarter. 

Regional Contrasts Sharpen: West Africa led on funding resulting from a handful of standout early-stage deals, despite a dip in overall volume. North Africa saw steady activity but softer values, as seed rounds dominated amid ongoing macro pressures. Meanwhile, big-ticket multi-region deals remained absent. 

Five Verticals Dominate Tech-Enabled Deals: FinTech, ClimateTech, AI, E-Commerce, and Supply-Chain Tech concentrated 94% of tech deals. 

Venture Debt Hits Near-Record High Despite Fewer Deals: Only 13 venture debt deals closed, but lenders deployed US$407 million in the second-highest quarter on record.