Q3 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 third quarter of 2025.

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Q3 2025 Venture Capital Activity in Africa

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Key Findings:

  • Market Stabilisation: Africa’s VC market is operating in its "new normal," with 122 Q3 deals (+17% YoY) and 362 deals YTD (in line with 2023–2024 averages), signalling a steady and sustainable recovery.
  • Gradual Recovery Interrupted: Despite steady volumes, disclosed deal value fell sharply in Q3 compared with Q1 and Q2. However, a surge in undisclosed deals suggests capital flows remain active but less transparent, and a 20% increase in median deal size vs. 2024 indicates selective but higher-quality investments.
  •  Seed and Early Stages Anchor the Market’s Recovery: Seed (+14% YoY) and Early Stage activity surged, while late stage deals hit a five-year low.
  • Regional Rebalance: Southern Africa now leads by value (26%), West Africa remains volume-heavy, and multi-region megadeals continue to decline.

  • Sector Diversification: AI and CleanTech begin to close the gap on FinTech’s lead

  • Venture Debt Achieves Record Highs: Debt financing hit record highs (US$1.6B across 55 deals) powered by six megadeals, making debt a core funding source.

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