2 weeks Ago By Ejike Kanife
Amid the investment slowdown in the African continent, several investors and venture capitalists are still showing significant interest in the African continent. Chief among them are Launch Africa, Techstars and 54 Collective. This was revealed by Africa-focused tech startup analytics company, Africa the Big Deal in a new report.
According to the report, 286 investors have been involved in at least one deal valued at at least $100,000 in H1 2024. This is way below the 393 investors involved in the same time last year, and 698 VCs involved in the first half of 2022. Only eight of the 286 VCs took part in 5 deals and above.
They include Launch Africa, Techstars, 54 Collective (former Founders Factory Africa), Catalyst Fund, Renew Capital, Y Combinator, DFC and Baobab Network. According to the report, Launch Africa emerged as the most active VC, being involved in 12 deals during the first half of the year. Founded in 2020 by Zachariah George and Janade Du Plessis, Launch Africa prides itself as a leading Pan-African VC fund solving the significant funding gap in the Seed and pre-Series A investment landscape in Africa.
The company backs startups across multiple sectors, regions, and products that tackle the most meaningful challenges on the continent. The VC has raised over US$36 million in its first fund, investing $31 million into 133 startups across 22 countries. “ After a relative lull in 2023 between the time the team finished allocating their Seed Fund I and finished raising their Seed Fund II, they signed a deal almost every other week on average in H1.
If they continue at this rate, they are well on track to do at least as many deals as they had in 2023 (19 in total) ,” the report stated. Techstars emerged as the second-most active investors in Africa during the first half of the year with nine deals. This is coming after the VC completed an outstanding 56 deals in total in 2023 (more than one a week on average), making it the most active investor in Africa last year.
The number represents 32 per cent of the total 28 deals the VC was able to pull in the first half of 2023. Techstars is a leading pre-seed venture capital firm, investing in a diverse, global pool of entrepreneurs and high-growth companies. The VC recently launched the 2024 edition of its accelerator program in partnership with Labs by ARMS.
54 Collective (previously known as Founders Factory Africa), along with Catalyst Fund and Renew Capital are joint next with each investor being involved in 7 deals apiece. 54 Collective says it gives early-stage startups the platform to build without boundaries. Founded in 2018 by Bongani Sithole, the VC empowers entrepreneurs across Africa’s diverse markets through a dynamic investment approach complemented by hands-on venture support from local teams.
The company recently rebranded from Founders Africa with the aim of giving a more global scope to local startups. See also: 54 Collectives Andrew Obuoforibo talks rebranding from Founders Factory Africa, non-dilutive loans, others Catalyst Fund is a VC fund and accelerator which prides itself as a thesis-driven investor. The VC company, comprising mostly ex-founders, believes in hands-on venture building, having spent over 400 hours with its founders to accelerate their growth.
“ Both 54 Collective and Catalyst Fund seem on track to match their 2023 performance (16 and 13 deals in total respectively) if they can keep up the pace ,” the report noted. The third in this lineup, Renew Capital has already done more deals in 2024 (seven) than they had in 2023 (five). Founded in 2007 and operating out of Addis Ababa, the VC firm prefers to invest in African growth-oriented small and medium enterprises, as well as private sectors.
Other VCs that have done up to 5 deals in the first half of the year include Y Combinator, DFC and Baobab Network. Of the three investors, DFC and Baobab have already done more deals than they had in the whole of 2023. Y Combinator which completed 12 deals in 2023, might still be on track to match that number this year.
Some names notably absent from the list of most active investors – i.e. VCs who had all done more than a deal a month on average in 2023 and did less than 5 in H1 2024 – are Ventures Platform and Norrsken.
Other past serial investors who have also been more quiet recently are Flat6Labs and LoftyInc, though both have both been actively raising new funds and will probably be back in the news quite soon..
