On 28th November 2024, we proudly launched the 2024 ABAN Angel Investment Survey Report, sponsored by the Dutch Good Growth Fund (DGGF), African Angel Academy (AAA), and supported by Briter Bridges, during the Africa Early Stage Investor Summit’s 11th Edition in Cape Town.
The summit, which was themed “Pioneering Pathways: Innovating Investment Mobilization in Africa” featured high-level discussions, masterclasses, and networking opportunities, all geared toward fostering innovation, unlocking liquidity, and building robust ecosystems for scalable ventures.
In line with these goals, the report offers an insightful overview of Africa’s evolving angel investment landscape, drawing insights from a diverse group of key ecosystem players on the continent. It further captures the pulse of angel investing across the continent, aggregating insights from over 300 angel investors, syndicates, and angel networks across 25 countries. The report also explores key investment trends, challenges, and opportunities while shining a light on the remarkable contributions of angels in fueling early-stage ventures poised to transform African economies; getting views from participants ranging from first-time angel investors to seasoned members of established networks, ensuring a balanced and holistic perspective on early-stage investing in Africa.
Highlights from the 2024 Angel Investment Survey
- Broadening Reach of Angel Networks: Africa now boasts over 110 active angel investment networks, a 27% increase compared to 2022. These networks are not only increasing in number but are also expanding their geographic reach, particularly into emerging markets such as Francophone West Africa and Southern Africa.
- Demographics of Angel Investors: The survey highlights the increasing diversity of investors, with 35% of participants being women, reflecting efforts to make investing more inclusive. Additionally, the age range of investors is broadening, with notable growth in participation from younger professionals aged 25 – 40.
- Sectoral Priorities: Technology remains the leading focus of angel investors, with 42% of deals targeting tech-driven startups. Within this sector, fintech leads the charge, followed by agritech and health tech. Emerging interest in climate tech has also gained traction, with sustainability-focused startups witnessing a 19% increase in funding.
- Investment Sizes and Patterns: On average, individual angels invested $30,000 per deal, while syndicates pooled larger amounts of up to $200,000. The survey reveals a shift towards co-investment models, where angel investors collaborate with venture capital funds and institutional partners.
- Cross-Border Investments: 48% of participants reported engaging in cross-border investments, demonstrating increased regional collaboration and the emergence of a Pan-African approach to early-stage investing.
- Impact Investing: Over 60% of respondents highlighted impact investing as a key priority, with investments focusing on ventures that address social, environmental, and economic challenges across Africa.
- Education and Capacity Building: A growing number of angel investors (34%) credited structured programs like the African Angel Academy for improving their knowledge and skills, enabling more informed investment decisions.
- Challenges Hindering Growth: Key hurdles identified include regulatory bottlenecks, limited exit opportunities, and a need for more education among potential investors. Additionally, access to reliable data remains a critical issue for networks operating in underdeveloped markets.
- Positive Sentiment for the Future: Despite challenges, optimism abounds, with 75% of respondents expressing confidence in the ecosystem’s growth prospects. Many anticipate increased deal flow and a higher rate of successful exits in the coming years.
- Strengthened Ecosystem Support: Institutional partners such as accelerators, incubators, and training programs play an increasingly pivotal role in preparing startups for investment and ensuring long-term sustainability.
While Nigeria, Kenya, and South Africa remain at the forefront of angel investment activity, countries like Togo, Ghana, and Egypt are rapidly emerging as promising hotspots. A significant milestone for 2024 was Togo’s launch of its first angel investment network, a testament to the ecosystem’s growing inclusivity and geographic expansion. The survey also highlights the impact of local and regional collaborations, including partnerships between angel networks and sector-specific accelerators. These partnerships foster a more integrated and supportive environment for startups across Africa.
The call to action for 2025 is clear and impactful: the 2024 Angel Investment Survey recognizes the successes of angel investors. Also, it outlines critical areas for action to strengthen the ecosystem further. These priorities include tackling exit challenges, enhancing investment education, and increasing funding access for underserved regions and sectors.
“This year, our survey report goes beyond celebrating the achievements of angel investors. It also identifies areas requiring targeted action, providing a roadmap to strengthen the ecosystem, foster innovation, and drive sustainable growth across the continent. These include addressing exit challenges, improving investor education, and increasing funding for underserved regions and sectors. As we look forward to 2025, we remain committed to deepening our research efforts, expanding the scope of the survey, and continuing to support Africa’s booming investment ecosystem. We encourage all stakeholders, investors, and entrepreneurs to contribute to our subsequent surveys and collaborate with us on other similar initiatives to drive sustainable growth.” Fadilah Tchoumba, ABAN CEO
By addressing challenges such as limited exit opportunities and fostering better investor education, ABAN aims to create a framework where early-stage ventures can survive and also thrive. Expanding access to funding for underserved areas is essential for unlocking Africa’s untapped entrepreneurial potential, ensuring that innovation reaches every corner of the continent. As ABAN gears up for the next chapter in 2025, the collective efforts of stakeholders will be instrumental in driving sustainable growth and creating lasting impact.
The full 2024 Angel Investment Survey report is available here.
