African startups secured 3.9 billion dollars in funding across 506 deals in 2025, signaling a stabilizing trend for the continent’s venture capital ecosystem after two years of global market adjustments, according to the African Private Equity and Venture Capital Association.
The report highlights strong growth in seed and early-stage investments, with median deal sizes reaching multi-year highs. Fundraising timelines from Seed to Series A also shortened, indicating more efficient early-stage progress. At the upper end of the market, eight megadeals closed in 2025, raising a combined 1.3 billion dollars and offsetting a decline in late-stage equity funding.
Domestic investor participation rose sharply, with African investors contributing 45 percent of total venture fund commitments. Development finance institutions based in Africa accounted for 63 percent of total DFI capital deployed, showing a shift toward local investment sources.
Venture debt also grew significantly, nearly doubling to 1.8 billion dollars, with East Africa accounting for more than two-thirds of deal value. This type of financing is becoming a core tool for growth-stage companies to extend runway and manage capital efficiently.
Venture-backed exits reached a new high of 34, rising 31 percent from the previous year. North Africa led in exit volume, while Southern Africa recorded the largest share of exit value at 288 million dollars. More than half of exits involved African buyers, demonstrating a growing local and regional market for acquisitions.
Abi Mustapha Maduakor, CEO of AVCA, emphasized that African venture capital is now more patient, structured, and locally anchored, showing confidence in homegrown startups and signaling long-term investability.
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