Interest in the African startup space witnessed a significant decline in 2024 as 520 investors backed over 430 tech startups across the continent with at least $100k in funding during the year. This is according to data made available by African tech startup analytics company, Africa the Big Deal.
According to the report, the 520 companies that invested in the continental tech space in 2024 are a decline from the 610 in 2023. This represents a 14.75% decline in investors and for all intents and purposes, interest.
Compared with over 1,000 investment companies ploughing their dollars into the continent in 2022, 2024’s 520 investors represent a nearly 50 per cent decline. Taking it further to 2021, when over 850 investors did business in the continent’s tech ecosystem, the decline is 39 per cent.
“Behind each of the 430+ start-ups in Africa that raised at least $100k in 2024 is an investor – more often than not, multiple investors – providing the much-needed capital to finance their growth. Last year, we found 520+ investors involved in at least one $100k+ deal on the continent (excluding grants & exits). This is a large community of investors supporting the ecosystem, but not as large as it used to be compared to 2023 (610+), or to 2022 when 1,000+ investors had participated in at least one deal, twice as much as in 2024,” the report reads

One reason for this decline is that tech-focused investment companies globally now prefer to play with the new toy, Artificial Intelligence (AI). With interest in other tech waning in the wake of the AI boom, and as there aren’t many pioneering AI startups in Africa, funding was taken elsewhere.
Another possible reason for the decline is the global funding winter made worse by global inflation last year. It could also be attributable to the high rate of startup failures and shutdowns recorded over two years. With so many failure stories, VC confidence is certain to be negatively affected.
Some analysts have posited another reason for the decline: some investors are busy raising their next fund.
54 Collective tops as investor activity declines
Aside from the dwindling number of investors, activity from available investors also declined. For instance, 75 per cent of the total 520 investors in 2024 (over 390) only participated in one funding round worth $100,000 or above
This is more than 72.1% in 2023, 68% in 2022, and 70.5% in 2021.
Similarly, only eight investors participated in more than 10 rounds or deals worth $100,000 or above. While this is the same with 2023, compared to the 28 who participated in more than 10 rounds in 2022, we find a 71.4% disparity. Compared to the 23 in 2021, the decline is 65.2%.


In a year of dwindling investor participation, Africa-focused VC firm 54 Collective emerged as the most active on the continent, having participated in 26 deals. This means the company made an average of more than 2 investments per month in 2024.
The investment company rebranded from Founders Factory Africa in August 2024 with a new drive to offer equity and non-dilutive capital up to a total of $500,000, enabling founders to scale their ventures across the continent. With this, the VC believes it has become more supportive of African founders.
“Our name change to 54 Collective communicates our continued commitment to African founders. We are more supportive than ever of unlocking opportunities for entrepreneurs and ensuring a level playing field for youth and women founders,” 54 Collective CEO Bongani Sithole said at the time.
Indeed, 54 Collective’s renewed commitment was on display last year. It became the only VC company to make more than 20 deals in 2024 and increased its number of investments by as much as 150 percent.
Aside from 54 Collective, other venture capitalists who made the Top 8 include Techstars, Catalyst Fund, and Launch Africa, which used to be the most active investors on the continent between 2021 and 2023. These three companies witnessed reduced participation during the year; perhaps they are also raising their next fund.


Others are Digital Africa, Baobab Network, Renew Capital, and EdVentures, who, like 54 Collective also increased their activity over the year.
VCs that participated in less than 10 deals include Y Combinator which took part in nine deals representing a steep decline of 75.7% from its 2021 total investments and an even steeper 79% from its 2023 total. 500 Global and Axian Group also put up a respectable performance.
“Yes, there were fewer investors active on the continent last year, and the most active investors were not nearly as active as they once were, yet it would be a mistake to jump to the conclusion that investors have abandoned the continent. Indeed, there is still a strong community and a lot of ‘dry powder’ to be deployed with quite a few new Africa-focused funds announced in the past couple of years,” the report said.