Investors Are Taking A More Tactical and Clinical Approach! In recent years, we've witnessed a significant shift in how investors approach opportunities in Africa. This transformation is driven by a blend of data-driven insights, sector-specific focus, and strategic partnerships. Here are some key trends: 1. Data-Driven Decisions - Investors are increasingly leveraging data analytics to identify high-potential sectors and startups. According to a report by Partech, African tech startups raised $5.2 billion in 2021, a 3.6x increase from 2020. 2. Sector Focus - Fintech remains a dominant sector, attracting 62% of the total funding in 2021. Agritech and healthtech are also gaining traction, reflecting the continent's unique needs and opportunities. 3. Local Partnerships - Strategic partnerships with local entities are crucial. These collaborations help investors navigate regulatory landscapes and understand market dynamics better. For instance, the collaboration between local banks and fintech startups has been pivotal in expanding financial inclusion. 4. Impact Investing - There's a notable rise in impact investing. Investors are not only seeking financial returns but also aiming for social and environmental impact. The Global Impact Investing Network (GIIN) reported that 45% of impact investors are targeting Sub-Saharan Africa. 5. Risk Management - Tactical asset allocation strategies are being employed to dynamically adjust portfolios based on market conditions. This approach optimizes risk and return, ensuring sustainable growth. These trends are fostering a more robust investment ecosystem in Africa, driving innovation and sustainable development. As we continue to build capacity and create opportunities for young leaders, it's exciting to see how these strategic investments will shape the future of African entrepreneurship. Invest with us, let's build Africa together! #InvestInAfrica #DataDriven #ImpactInvesting #Fintech #Agritech #Healthtech #SustainableDevelopment #AfricanEntrepreneurs
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🌍📉 𝗗𝗲𝘀𝗽𝗶𝘁𝗲 𝗴𝗹𝗼𝗯𝗮𝗹 𝗵𝗲𝗮𝗱𝘄𝗶𝗻𝗱𝘀, 𝗔𝗳𝗿𝗶𝗰𝗮'𝘀 𝘃𝗲𝗻𝘁𝘂𝗿𝗲 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗹𝗮𝗻𝗱𝘀𝗰𝗮𝗽𝗲 𝘀𝗵𝗼𝘄𝗰𝗮𝘀𝗲𝘀 𝗿𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝘁 𝘀𝗲𝗰𝘁𝗼𝗿𝘀 𝗮𝗻𝗱 𝗵𝗶𝗻𝘁𝘀 𝗮𝘁 𝗽𝗿𝗼𝗺𝗶𝘀𝗶𝗻𝗴 𝗳𝘂𝘁𝘂𝗿𝗲 𝘁𝗿𝗲𝗻𝗱𝘀! 🚀💡 𝗢𝘃𝗲𝗿𝗮𝗹𝗹 𝗩𝗖 𝗙𝘂𝗻𝗱𝗶𝗻𝗴 📊 Q3 2024 saw $67B globally, with a slight retreat but steady interest in innovation. Africa navigated through these times with $507M invested across 108 deals. 𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗦𝗽𝗼𝘁𝗹𝗶𝗴𝗵𝘁 🔦 North Africa shines, leading with $368M in investments, spotlighting high-value rounds in Egypt’s financial sector. Despite global declines, Africa remains a crucible of opportunity. 𝗦𝗲𝗰𝘁𝗼𝗿 𝗦𝘂𝗰𝗰𝗲𝘀𝘀 𝗦𝘁𝗼𝗿𝗶𝗲𝘀 🌟 FinTech and digital banks continue to dominate, pulling in $564M. AI and CleanTech sectors surge, showcasing Africa’s forward-thinking adaptation. 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗗𝗲𝗯𝘁 𝗗𝘆𝗻𝗮𝗺𝗶𝗰𝘀 💼 A notable rise to $755M across 40 deals in 2024, proving its strategic importance in funding ecosystems. 𝗟𝗼𝗼𝗸𝗶𝗻𝗴 𝗔𝗵𝗲𝗮𝗱 🌐 While the landscape recalibrates, the pulse of growth and innovation persists. Seed and early-stage investments are up, setting a robust foundation for future growth. 🔗 Dive deeper into the trends and stats with the full report from AVCA - The African Private Capital Association! Link in the comments below ⬇️ 👍🏽 Like, 💬 comment, and ↪️ share if you’re excited about Africa’s dynamic VC future! #VentureCapital #Africa #InvestmentTrends #Innovation #FinTech #CleanTech #ArtificialIntelligence #EconomicGrowth
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African Investors Lead Startup Funding on the Continent in 2023 In a remarkable turn of events, African-based investors took the lead in startup funding across the continent in 2023, contributing to 35% of all investments in deals exceeding $100,000. This development, highlighted by Africa: The Big Deal, showcases a significant shift in the investment landscape, with African investors outpacing their North American counterparts, who accounted for 30% of investments. European, Asian, and Middle Eastern investors followed, marking a notable change attributed to a decline in foreign investment. This move underscores the growing confidence of its investors in Africa's economic potential amidst challenges such as currency devaluation and inflation. Despite a downturn in total funding from $4.85 billion in 2022 to $2.9 billion in 2023, the commitment of local investors signals a resilient and evolving startup ecosystem on the continent. #AfricanStartupEcosystem #InvestmentShift #EconomicGrowth Image Source: Africa: The Big Deal
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🎙️ Featuring Jim Chu from Untapped Global (snippet from a Dream VC panel) 💰 Investing in entrepreneurs in emerging markets holds enormous potential for creating long-lasting economic and social change. These regions often face significant challenges, but entrepreneurs working within their communities are uniquely positioned to develop innovative solutions tailored to local needs, including healthcare, education, energy access, and financial inclusion. 💹 One of the most notable impacts of investing in these markets is job creation. Micro, small, and medium-sized enterprises (MSMEs) in countries like Colombia, Malaysia, and Paraguay drive employment and economic growth, particularly where larger corporations may not be as prevalent in comparison. 🌍 In Africa, for example, entrepreneurial ventures are crucial to harnessing the potential of a youthful, fast-growing population. Investments in infrastructure, intra continental trade, and productivity can unleash even greater opportunities for growth. #dreamvc #venturecapital #cvc #africa #impactinvesting
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Investing in Africa's venture ecosystem requires an understanding of how it operates. There are various asset classes to choose from, some with significant opportunities for returns and others with notable risks. The most important thing to do is to enter with the right strategy and get accurate local insights from the right partner. The most common asset classes are: 1️⃣ Equity Investments: High-growth sectors like fintech, e-commerce, transport & logistics, health tech are booming. Do your due diligence, partner with local experts, and understand the regulatory environment to make informed investments. 2️⃣ Debt Financing: Looking for steady returns with lower risk? Assess borrower creditworthiness, local economic conditions, and currency risks. Impact investing is also gaining traction, offering financial returns and positive societal impacts. 3️⃣ Private Equity & Venture Capital: PE and VC are vital for growing startups and SMEs. Look for experienced fund managers with local knowledge. Co-investing with reputable funds can spread risk and provide vetted opportunities. 4️⃣ Diversification & Local Partnerships: Spread your investments across sectors and countries to mitigate risks. Collaborate with local investors and partners for better market entry and success. Use technology and data analytics to make informed decisions and adapt swiftly to market changes. 👉 Africa's venture scene is full of potential but requires a proper and accurate assessment. Get a partner that understands the local market well. Chat with us at Raise: https://lnkd.in/d3PuqfWC or send us a message on WhatsApp: https://wa.me/254799598541 #VentureCapital #PrivateEquity #InvestingInAfrica #EmergingMarkets #BusinessGrowth #Raise #EquityOwnership #DebtFinancing #Investments #AngelInvestors #RaiseAfrica
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Thoughts on funding innovation in Africa. We like to put stuffs in neat little boxes: “Institutional investors” “Accredited investors” “Angel investors” blah blah blah… If there is anything I know about disruptive innovation, the kind that creates new markets and widespread prosperity is that it’s all about breaking rules. Breaking rules about what is the “proper” way to do things and rather figuring out a much “better” way to do things. Africa needs to disrupt how we fund her innovation. I am grateful for the foreign capital that has found its way to the continent. But are we really winning when all of that return on investment eventually leaves the continent? African is a startup trying to be a large corporate. We can’t play by the rules of already developed economies and expect to win. We need to act and think differently about how we fund innovation on the continent. We need more Africans investing in Africa. We need to disrupt how capital is raised and how equity is obtained. Africa needs more Angel investors and a strong Angel investing culture. Not the kind that places a restriction on who can fund innovation and how much is “good enough”. Nope. But the kind that is accommodating, community driven and embedded in hope, trust and a belief in a future Africa that will be created by Africa. Africa needs more Angel investors.
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In this post, we shared insights on the African startup ecosystem with Latitude59, highlighting our collaborative efforts with both startups and investors to drive growth within the ecosystem. To find out more about our services, visit https://lnkd.in/dNKSy-xp Read this to know why we are excited about the African market.
⚫ WHAT MAKES YOU EXCITED ABOUT THE AFRICAN MARKET? 💡 The potential! Africa is home to some of the world’s deep-rooted problems. It is buzzing with innovation—founders are solving real problems with fresh, creative solutions tailored to local needs. Whether it’s fintech making financial services accessible, agritech revolutionizing farming, or clean energy startups lighting up off-grid communities, the ideas are not just ambitious—they’re impactful. 👉M-PESA Africa, powered by Safaricom PLC, revolutionized financial inclusion in Africa, and many startups have leveraged this platform to innovate in different sectors - Agritech, Climatetech, Edtech, Fintech, Healthtech, E-commerce, Logistics etc, driving sustainable development. 💡Also, the continent is home to the world’s youngest population, projected by the UN to contribute 20% to the world’s global force by 2030. This means a growing tech-savvy population eager to adopt new solutions. Combining this with growing internet access, better infrastructure, and increasing global investor interest, one has a recipe for explosive growth. 💡What is most inspiring, is the resilience and resourcefulness of African entrepreneurs. They are not just building businesses; they’re creating solutions that improve lives, change communities, and position Africa as a global player in tech and innovation. ⚫ WHAT ARE THE MAIN CHALLENGES? The fundraising market has been difficult the last few years and has caused many startups to shut down. There are others who haven't reached the product-marktet-fit or are simply not investment-ready: startups need to have financial documents updated and audited, their internal processes/licenses ready for growth and compliant with global standards. This applies especially for startups operating in regulated sectors and industries, etc. As a result, their fundraising process takes longer than it should. ⚫ HOW DO YOU SUPPORT THE STARTUP SECTOR? Diligence Africa bridges the gap by helping startups restructure and implement their internal processes and controls (covering financial, operational, legal, and technology) through Business Audit and Process optimization solutions that help them identify existing risks in their businesses and help mitigate them. We support Kenyan startups with Fractional CFO services, Accounting services, Governance and Compliance services, including guiding them through their fundraising processes to ensure they overcome hurdles to scalesuccessfully and gain investor confidence and approval. ⚫ WHY IS DILIGENCE AFRICA AT #LATITUDE59xKENYA? To support the growth of Africa’s startup ecosystem and connect with innovative founders and forward-thinking investors. Who should approach us? 👉 Startups: If you want to refine your business for investment readiness or need guidance to stand out toinvestors, we are here to help. 👉 Investors: If you are exploring opportunities in Africa and want clear, detailed insights to make informed decisions, let's talk.
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🌍🌟 𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗮𝗿𝗲 𝘀𝘂𝗽𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗶𝗻 #𝗠𝗘𝗡𝗔, #𝗔𝗳𝗿𝗶𝗰𝗮, 𝗮𝗻𝗱 #𝗦𝗼𝘂𝘁𝗵𝗲𝗮𝘀𝘁 𝗔𝘀𝗶𝗮. Here's a quick overview: 𝗠𝗘𝗡𝗔: International investors surged, with a 28% 📈 YoY increase. The #US 🇺🇸 and #UK 🇬🇧 lead, with US investors up 70% and UK by 257%. They doubled their share of #capital deployed to 37% and increased participation in early-stage deals 🚀. 𝗔𝗳𝗿𝗶𝗰𝗮 There’s a decline in unique investors, particularly with a 17% 🔻 drop from the US and 57% from #South Africa 🇿🇦. Despite this, international investors still make up 65% of the investor base. Local North African investor activity is rising 📊, with #Egyptian 🇪🇬 investors playing a key role. 𝗦𝗼𝘂𝘁𝗵𝗲𝗮𝘀𝘁 𝗔𝘀𝗶𝗮 International investors decreased by 6% 🔍, but US investors bucked the trend, increasing by 11%. #Singapore 🇸🇬 remains stable, maintaining a consistent 62%-67% international investor base since 2020. These shifts highlight a dynamic landscape where international participation is important 🔑. To dive deeper into these insights and understand how they can shape your investment strategies, download MAGNiTT's latest 2020-Q3 2024 How Are #Global #Investors Shaping Emerging Venture Markets: https://lnkd.in/dkeqVtJc How do you see these trends affecting the future of startups in these regions? Let’s discuss! 💬
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Africa’s growth story is only just beginning. With cutting-edge tech ecosystems, a wealth of natural resources, and rapidly evolving markets, the continent is redefining what it means to innovate on a global scale. It’s not just about tapping into Africa’s potential—it’s about actively participating in its transformation and reaping the benefits of sustainable, inclusive growth. CLG Plus is here to guide you through Africa’s diverse business landscapes, offering strategic insights and tailored legal support. Together, we can unlock new frontiers, drive impactful partnerships, and shape the continent’s future as a global innovation powerhouse. 📖 Learn more about how to invest in Africa’s potential: https://lnkd.in/dwQhAU_z #InvestInAfrica #Innovation #GlobalGrowth #CLGPlus #CLG
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🌱 Impact investment isn’t just about returns—it’s about building a future where every dollar drives change. And nowhere is the opportunity more exciting, dynamic, and transformative than in Sub-Saharan Africa. With a rapidly growing population, thriving innovation hubs, and untapped markets, Sub-Saharan Africa is poised to lead the next wave of impactful investment. But this isn’t just about pouring in capital; it’s about supporting local entrepreneurs, solving systemic challenges, and building sustainable ecosystems. So how do we make the most of this opportunity? Based on my experience in impact investment across Sub-Saharan Africa, here are 5 strategies to maximize impact: 1️⃣ Empower Local Entrepreneurs: Invest in locally-led businesses to ensure solutions are rooted in cultural and market-specific understanding. 2️⃣ Bridge Financial Gaps: Support fintech innovations that provide affordable and accessible financial services to underserved populations. 3️⃣ Accelerate Agri-Tech Solutions: Prioritize businesses driving agricultural transformation with technologies that address food security and climate resilience. 4️⃣ Focus on Inclusive Leadership: Back ventures led by women and youth, who are driving transformative change across the region. 5️⃣ Build Ecosystem Partnerships: Collaborate with regional accelerators, incubators, and governments to amplify scalability and sustainability. The $1 trillion opportunity to drive global change is here—and it’s vibrant, resilient, and growing in Sub-Saharan Africa. Are you ready to be part of it? Let’s talk about how we can shape this future together. Drop your thoughts below or message me directly to explore opportunities. ♻️ Share this if you agree. 👉 Follow Ben Botes for more insights on #Leadership, #Entrepreneurship and #ImpactInvestment.
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Great research piece from AVCA - The African Private Capital Association & Nadia Kouassi Coulibaly on African Francophone countries. >>> Snapshot: Senegal’s Private Capital Boom > Rising Star: Senegal ranks high in Francophone Africa, with 58 deals worth ~$700M since 2012, claiming 16% of regional deal volume. > VC Surge: Venture capital leads, driving 66% of deal volume since 2021, boosted by Senegal’s Startup Act. > Tech Transformation: Financials: 90% of deals tech-enabled (2021–H1 2024). Industrials: 80% tech-driven deals, with players like Paps and Afrikamart. > Exits: Dominated by trade sales and MBOs. Senegal leads exit volume in Communication Services. 43% of 2019 exits were MBOs. > Gender Leadership: 31% of VC deals (2020–H1 2024) went to gender-diverse startups, many led by women. >>> Verdict: Senegal is a key player in Francophone Africa’s private capital scene, excelling in VC, tech adoption, and gender inclusivity. https://shorturl.at/ZiBcB
Private Capital Regional Landscape: Francophone Africa
avca.africa
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