African Startup Ecosystem Shrinks As Investor Numbers Halve To 520

Investment activity in Africa’s startup ecosystem experienced a notable decline in 2024, with fewer investors participating in deals and a drop in overall activity levels compared to previous years.
According to recent data from Africa: The Big Deal, over 430 African startups raised at least $100,000 in 2024, supported by a smaller pool of 520 active investors, a significant decrease from the 1,000+ investors recorded in 2022.
The contraction in investor activity is also evident in the numbers as 69 per cent of investors participated in just one deal in 2024, marking the highest proportion since 2021. Similarly, the number of investors involved in more than 10 deals plummeted from 28 in 2022 to just eight in 2024.
Despite this slowdown, some investors remain steadfast in their commitment. Leading the charge was 54 Collective (formerly Founders Factory Africa), the most active investor of 2024, with 26 deals – more than two per month on average.
Other notable players include: Techstars, Launch Africa, and Catalyst Fund, which continued to back African startups, albeit at reduced levels compared to previous years. Additionally, newer entrants like Digital Africa, Baobab Network, Renew Capital, and EdVentures have ramped up their activity.
While prominent investors such as Y Combinator saw a sharp decline in their African investments – dropping from 43 deals in 2023 to just nine in 2024 – the ecosystem retains a robust foundation. Many investors are focused on raising new funds, and several Africa-specific funds have been launched recently, ensuring there is still substantial ‘dry powder’ for future investments.
Operating partner at Catalyst Fund, Maxime Bayen, expressed optimism despite the numbers, stating that, “Yes, activity has slowed, but it would be a mistake to conclude that investors have abandoned the continent. Many still have a vested interest in African startups, and with exits on the horizon, this ecosystem will continue to grow.”