Venture capital firms across Africa are changing the tech and business landscape, here are the top six.
Venture capital firms are key players in the African tech and startup scene. According to Africa: The Big Deal, a VC that maintains a database of deals, nearly 1,500 investors have been involved in deals across the continent over the last two years (2021-2022).
According to the company’s data, here are Africa’s six most active venture capital firms that have made at least one USD 100,000 deal per month in 2021 and 2022:
Launch Africa is the most active venture capital firm in Africa, taking part in the highest number of deals in both 2021 and 2022. The firm has the widest geographic spread, and makes more than one deal a week. According to the data, the company has been involved in 12% of all equity deals valued between USD 100,000 and USD 10 million in Africa during the period.
Egyptian firm Flat6Labs is the second most active VC. The company has focused on North Africa in the past.
Global accelerator and investor Y Combinator continued to grow its presence in Africa during 2021 and 2022. Two-thirds of its investments took place in Nigeria.
According to the data, LoftyInc made, on average, more than three investments worth over USD 100,000 per month during the period, nearly half of which were in Nigeria.
Techstars and Future Africa
Accelerator and investor Techstars and Future Africa both focused on Nigeria, with approximately half of their USD 100,000 deals taking place in the country.
According to Africa: The Big Deal, eight other firms placed at least one USD 100,000 deal per month in 2021 and 2022: Verod-Kepple Africa Ventures, Founders Factory, Norrsken, Plug and Play, Ventures Platform, Musha Ventures, 4DX Ventures and 500 Global.
Apart from Flat6Labs, all of the listed investors have placed deals in at least three of Africa’s five regions. Launch Africa, YC, LoftyInc and Plug and Play have invested in all five regions. Central Africa received the least attention, with only five investors on the list involved in deals. Only 25% of deals occurred outside of the “Big Four” in 2021-2022. Norrsken invested the most in ‘the rest of Africa’, with 45% of its deals outside of the “Big Four”.
These findings are in line with previous reporting, which found that the “Big Four” accounted for 75% of Africa’s startup funding. Fintech continues to dominate the African startup scene, though other sectors are growing fast.