Venture Capital Trends to Watch in Africa

Summary

Tokunboh Ishmael, co-founder of Alitheia Capital, discusses the shift in African venture capital toward fundamentally driven, resilient business models. She highlights the growing role of domestic investors, particularly pension funds, and expects foreign capital to return as quality improves.

• African startup funding held up in 2025 despite tightening conditions, with $5 billion invested.
• The VC landscape is moving away from blitzscaling toward sustainable, impact-driven growth.
• Domestic African investors now account for 45% of funding, up from a smaller share previously.
• Pension funds are ballooning and seeking higher returns through private capital allocations.
• Foreign investors are expected to return as the quality of African startups improves.
• Sectors like fintech, clean tech, and health tech continue to attract investment.