The sixth yearly Venture Capital Activity in Africa report has revealed that in 2024, Africa’s venture ecosystem saw a 22 per cent drop in deal volume and a 28 per cent decline in deal value.
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According to the report released yesterday, Africa’s entrepreneurial ecosystem collectively secured 487 deals in 2024. This was distributed as 427 venture capital deals with a value of $2.6 billion and 60 venture debt deals worth $1 billion.

Despite declining activity, the median VC deal size rose to $2.5 million (+32 per cent year-on-year, indicating higher deal values despite a drop in overall activity.

Funding was concentrated at two ends: early-stage and mature ventures, while mid-stage companies faced heightened pressure. Funding rounds progressed more quickly, with seed to series A averaging 14 months, series A to B at 19 months and series B to C at 25 months, reflecting increased efficiency in follow-on funding.

West Africa maintained its lead in deal volume for the fourth consecutive year, led by Nigeria, which was the most active country by volume at 16 per cent of deals.

Despite lower volumes, the report stated, multi-region deals garnered the highest total capital, while the ‘Big 4’ (Nigeria, Egypt, Kenya and South Africa) collectively represented 55 per cent of all deals and 64 per cent of capital.
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Multi-region deals ranked first in Africa by deal value. Notably, multi-region start-ups are shifting from pan-African expansion strategies to broader emerging market playbooks, using later-stage funding to scale into regions like Southeast Asia, Latin America and beyond.

Financials was the most active sector by volume (30 per cent) and attracted the largest share of capital (59 per cent) in 2024. Reflecting this dominance, FinTech and Digital Banks led tech-enabled deal activity, with 116 deals that collectively raised $1.4 billion. Clean and climate tech gained ground in 2024, doubling its share of tech-enabled deal volume to 13 per cent.

Meanwhile, AI broke into the top four most funded verticals with 42 deals cumulatively valued at $108m.The report stated that 614 active investors participated in African VC in 2024, representing a 21 per cent decrease from 774 in 2023. However, local investors took the lead for the first time, with African investors forming the single largest group (31 per cent) of active VC participants on the continent.

It also noted that venture-backed exits in Africa are gaining momentum, with 138 recorded between 2019 and 2024 – reflecting a clear upward trend over time, despite remaining flat in 2024.

Trade sales continued to dominate, accounting for 84 per cent of all exits that year, with an average holding period of 3.8 years.The report stated that $2.7 billion in capital commitments was raised by 35 unique fund managers across 41 funds between 2015 and 2024.
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