Grace Ashiru
Amid the slowdown in investment across the African continent, certain investors and venture capitalists continue to display strong interest. Notably, Launch Africa, Techstars, and 54 Collective remain active players. This insight comes from a new report by Africa-focused tech startup analytics firm, Africa the Big Deal.
The report highlights that 286 investors participated in at least one deal worth $100,000 or more during the first half of 2024. This marks a significant decline from the 393 investors involved in the same period last year and the 698 VCs that participated in the first half of 2022.
Among these 286 VCs, only eight were involved in five or more deals. These include Launch Africa, Techstars, 54 Collective (formerly Founders Factory Africa), Catalyst Fund, Renew Capital, Y Combinator, DFC, and Baobab Network.
Launch Africa stood out as the most active VC, having been involved in 12 deals during the first half of the year. Founded in 2020 by Zachariah George and Janade Du Plessis, Launch Africa positions itself as a leading Pan-African VC fund, addressing the substantial funding gap in Seed and pre-Series A investments across Africa. The firm supports startups across various sectors, regions, and products, focusing on solving key challenges on the continent. Launch Africa’s first fund raised over $36 million, with $31 million already invested in 133 startups across 22 countries.
“After a period of relative quiet in 2023, between the closing of their Seed Fund I and the raising of Seed Fund II, the team signed deals at an impressive rate—nearly one every other week in the first half of 2024. If they continue at this pace, they are on track to match or even exceed the 19 deals they completed in 2023,” the report stated.
Techstars, 54 Collective, and other key investors
Techstars ranked as the second-most active investor in Africa during H1 2024, with nine deals. This follows an impressive 56 deals completed by the VC in 2023, averaging more than one per week, making it the most active investor on the continent last year. The nine deals represent 32% of the total 28 deals Techstars closed in the first half of 2023.
Techstars, a leading pre-seed venture capital firm, invests in a diverse, global pool of entrepreneurs and high-growth companies. The firm recently launched the 2024 edition of its accelerator program in collaboration with Labs by ARMS.
54 Collective (formerly Founders Factory Africa), Catalyst Fund, and Renew Capital followed, each involved in seven deals. 54 Collective provides early-stage startups with a platform to build without boundaries. Founded in 2018 by Bongani Sithole, the firm empowers entrepreneurs across Africa’s varied markets through a dynamic investment strategy, supported by local teams offering hands-on venture support. The company’s rebranding from Founders Factory Africa reflects its ambition to offer local startups a more global outlook.
Catalyst Fund is a thesis-driven VC fund and accelerator that emphasizes hands-on venture building, boasting a team primarily composed of ex-founders. The firm has spent over 400 hours working directly with its portfolio founders to accelerate their growth.
“Both 54 Collective and Catalyst Fund appear to be on track to match their 2023 performance—16 and 13 deals, respectively—if they maintain their current pace,” the report observed.
Renew Capital, the third key player in this segment, has already exceeded its 2023 performance with seven deals in 2024 compared to five last year. Founded in 2007 and headquartered in Addis Ababa, Renew Capital focuses on investing in African growth-oriented small and medium enterprises, with a strong emphasis on private sector development.
Other notable VCs that closed at least five deals in the first half of 2024 include Y Combinator, DFC, and Baobab Network. Both DFC and Baobab have surpassed their 2023 deal count, while Y Combinator, having completed 12 deals in 2023, remains on track to match that figure this year.
Some notable investors missing from this year’s most active list—those who averaged more than one deal per month in 2023 but have done fewer than five deals in H1 2024—include Ventures Platform and Norrsken. Meanwhile, past serial investors like Flat6Labs and LoftyInc have been quieter lately, though both firms have been actively raising new funds and are expected to make headlines again soon.
