TechCabal’s Post

A recent report by the African Business Angel Network (ABAN) reveals that 77% of African angel investors have invested less than $25,000 in startups between 2022 and 2024. The finding points to a cautious, risk-averse approach among investors in the continent’s startup ecosystem. The report also shows African angel investors’ varied approaches, depending on their risk tolerance and investment goals. Half of those surveyed opt for equity investments via Simple Agreements for Future Equity (SAFE), a tool typically used by risk-tolerant investors who hope for high returns in the long run. Meanwhile, 28% of angel investors prefer debt instruments, such as convertible notes or loans. These options offer quicker returns and shorter timelines, appealing to more risk-averse investors looking for a faster payoff without completely forgoing a stake in early-stage ventures. Click the link to learn more 👉 https://lnkd.in/dkf62wYG