Q2 2025 Venture Capital Activity in Africa

This series provides an exclusive look at the latest trends in African venture capital, offering insights into regional dynamics, sector-specific shifts, and the key areas driving investment across the continent during the first half of 2025.

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Q2 2025 Venture Capital Activity in Africa

Key Findings:

  • Cautious Recovery Takes Hold:  Venture capital deal volume rose 11% in H1 2025 and funding stabilised at US$1.2bn. Average ticket sizes climbed 31%, suggesting a more confident, but still selective, deployment of capital.
  • Seed Reclaims Centre Stage:  Seed deal activity surged 40% YoY, anchoring the market’s rebound as investors back early-stage innovation.
  • North Africa Leads as Capital Spreads Wider: North Africa topped deal flow for the first time in five years, while funding was more evenly distributed across all regions than at any point since 2020.
  • FinTech Holds Lead, but CleanTech and AI Are Catching Up: CleanTech and Artificial Intelligence each captured one fifth of tech-enabled deal flow in H1, forming a new top tier alongside FinTech.
  • Venture Debt Sets a New Record: H1 2025 saw US$971mn raised through venture debt - more than double last year’s figure and the first time it outpaced VC in a single quarter.
  • Outlook - Measured Recovery to Continue: If trends hold, 2025 could match last year’s volume and surpass recent value averages, as investor sentiment gradually improves and the market settles into a new baseline. 

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🌱 Surge in Seed Activity Anchors Market Recovery 

The ecosystem is reflating from the bottom up. Seed rounds led the recovery in H1 2025, with deal count rising  30% YoY. Comprising one-third of all deal activity, the Seed stage contributed 80% of the net increase in total volume this half-year. 

 

Overall, venture deal volume grew 11% compared to H1 2024, while deal value rose 38% YoY, with capital raised split evenly across Q1 and Q2 2025. 

View the full Q2 2025 Venture Capital Activity in Africa Report by AVCA: https://bit.ly/40IFYiV

🚀 Early-Stage VC in Africa: A Mixed Bag 

Despite a 14% dip in deal volume, Africa’s Early-Stage market segment saw a 32% jump in deal value during H1 2025, bolstered by standout deals like: 

  • US$75mn Series A - Egyptian PropTech star Nawy
  • US$55mn Series B - SA FinTech powerhouse Stitch 

Meanwhile, late-stage remains quiet, with just one deal thus far in 2025:

  • 📲 US$13M Pre-Series C - Egyptian digital lender MoneyFellows 

Is this a slow burn or a sign of change ahead? All eyes on H2.
 

View the full Q2 2025 Venture Capital Activity in Africa Report by AVCA: https://bit.ly/40IFYiV

⚡ CleanTech and AI Join Fintech in Top Tier of African VC Tech Verticals 

Clean & ClimateTech and AI each claimed roughly one-fifth of deal volume in H1 2025, consolidating their positions alongside FinTech as Africa’s top tech verticals.  

 

CleanTech continues to attract capital amid rising demand for cleaner, more resilient energy systems. AI’s ascent reflects growing adoption of sector-agnostic tools that enhance productivity, decision-making, and service delivery. 

 

View the full Q2 2025 Venture Capital Activity in Africa Report by AVCA: https://bit.ly/40IFYiV

 

🌍A Shift in Africa’s Regional VC Map  

  • North Africa now dominates in deal volume with 26% share for the first time in five years. Egypt leads, but Algeria and Tunisia are rising. 
  • Southern Africa assumes the highest share of capital raised (25%) despite fewer deals, driven by big-ticket deals at the Early-Stage. 
  • Multi-Region Deals are down from 39% of capital raised between 2020–2023 to 20% in H1 2025, enabling a more balanced regional distribution of capital across the rest of the continent. 

View the full Q2 2025 Venture Capital Activity in Africa Report by AVCA: https://bit.ly/40IFYiV

📈 Venture Debt Hits Record High in H1 2025 as Value Doubles Despite Fewer Deals  

H1 2025 saw a continued upward trajectory in Africa’s venture debt market in H1 2025, achieving a new record for half-year deal value even as deal activity softened. Total venture debt value more than doubled the total recorded in H1 2024.  
 
This performance was anchored by a particularly strong Q2, which marked the first time that venture debt outpaced venture capital funding within a single quarter. 

View the full Q2 2025 Venture Capital Activity in Africa Report by AVCA: https://bit.ly/40IFYiV

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