• Africa-based investors accounted for 30% of active VC players in 2025
• Total VC funding reached $3.9 billion across 506 deals
• Venture debt jumped 91% in value to $1.8 billion

Africa-based investors represented 30% of venture capital players funding African startups in 2025, compared with 28% from North America and 25% from Europe, according to a report published on February 10 by the African Private Equity and Venture Capital Association (AVCA).

The report, titled Venture Capital in Africa Report 2025, notes that local funds were the most active for the second consecutive year. It highlights a growing and more stable domestic investor base, which provides greater resilience to the ecosystem during global economic turbulence that often leads some international investors to pull back.

A total of 188 African investors backed companies operating on the continent during the year. They are mainly based in South Africa, Egypt, Nigeria, and Kenya. Seven African funds ranked among the top 10 most active investors by number of deals: Launch Africa Ventures (Mauritius, 14 deals), Renew Capital (Ethiopia, 8), All On (Nigeria, 7), Azur Innovation Management (Morocco, 7), Beltone Venture Capital (Egypt, 7), ESquared Investments (South Africa, 7), and Holocene Venture (South Africa, 7).

Overall, 625 investors were active in Africa’s VC market in 2025, up from 614 in 2024. International funds accounted for 70% of the total. Their strong presence reflects several factors, including access to local talent and long-term return potential aligned with their strategic goals.

Venture debt surges 91% in value

Diaspora fund managers also played a key role in linking international capital pools with African markets. The report also notes growing philanthropic capital from organizations such as Belgium’s EDFI Management Company.

Total venture funding reached $3.9 billion across 506 transactions in 2025, compared with $3.6 billion in 2024. The total includes equity investments and venture debt.

Equity funding declined 21% year-on-year to $2.1 billion, while deal volume remained almost stable at 432 transactions. Venture debt — including direct loans, convertible loans, and mezzanine financing — expanded sharply. A total of 74 debt transactions were recorded, up 23% year-on-year, with total value rising 91% to $1.8 billion.

Although venture debt accounted for 15% of total deal volume, it represented 47% of total investment value in 2025.

By region, North Africa ranked first by total investment value at $762 million, followed by Southern Africa ($560 million), West Africa ($547 million), East Africa ($426 million), and Central Africa ($27 million). Multi-regional companies attracted $1.56 billion.

AVCA also reported 34 exits in 2025, compared with 26 in 2024.

Walid Kéfi