According to an analysis by ABAN (African Business Angel Network), 77% of angel investors who invested in African startups between 2022 and 2024 contributed less than $25,000.
The investment landscape is shifting towards higher investment ranges, specifically from $50,001 to $250,000. Half of the surveyed investors use Simple Agreements for Future Equity (SAFE), indicating a long-term growth perspective.
Another 28% prefer debt instruments like convertible notes, aiming for quicker returns while still maintaining potential equity participation.
The survey reveals that 59% of angel investors prioritize job creation and poverty reduction. Meanwhile, 19% focus on supporting youth and women entrepreneurs, and 10% are directing their investments towards climate solutions.
Technology-driven startups attract significant investor interest, with 42% of angels prioritizing tech investments. The $1.8 billion invested in sectors such as fintech, energy technology, and e-commerce aligns with these preferences.
Additionally, 25% of investors adopt a sector-agnostic approach, investing in various industries, including agriculture and healthcare.
Over the past 15 years, angel investments across the continent have reached $35 million. Angel networks continue to emerge throughout Africa, providing critical support through training programs and data communication.
These networks help streamline decision-making processes and expand investor access within the continent’s startup ecosystem.
Angel investors are showing increased strategic diversity in their approach to startup funding, with a significant focus on social impact factors. As angel networks strengthen and mature, investor confidence grows, leading to more funding opportunities across the continent.