Startup funding in Africa increased steadily from 2016 until the pinnacle in 2022. After that, deal volume and deal size decreased significantly. Although the funding picture in Africa was consistent with the global downward VC funding trend, the currency volatility and high inflation in Africa have prompted investors to prioritise “safer investments;” i.e. companies with established track records and/or a US base over African startups, leaving many emerging Africa companies without the capital needed to grow. 

Despite the venture capital funding market recoil, early-stage founders in Africa still have options when looking for capital to operate and grow their businesses, including Africa-based incubators, venture debt loans, friends and family rounds, family offices, and angel investing. In this article, we will focus on angel investing, and discuss our views on ways to increase angel investing in Africa’s venture ecosystem on a macro-level— while also dispelling some myths about angel investing on the continent. 

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