Following a period of global economic headwinds that saw a dip in funding in 2024, the African tech ecosystem has shown resilience and is now witnessing a rebound. With over $2 billion raised so far, investor sentiment is cautiously optimistic, and a significant amount of “dry powder” — committed but unallocated capital — is poised to fuel the continent’s most promising startups. This confluence of factors is creating a favorable window for founders ready to capitalize on the year-end momentum.
The Year-End Hustle
The concept of a pre-Thanksgiving or end-of-year rush to close deals is a familiar narrative in the global VC scene. In Africa, while the seasonal demarcations might be less rigid, the pressure to meet annual deployment targets is a significant driver of Q4 activity. Investors, having navigated a slower first half of the year, are now keen to back promising ventures and solidify their 2025 portfolios.
Data from industry reports indicates a pattern of increased activity towards the latter half of the year. While a definitive “season” is debatable, the combination of VCs aiming to meet annual goals and a flurry of startups looking to secure funding before the new year creates a dynamic and competitive fundraising environment.
For founders, this translates into a critical window of opportunity. A key piece of advice for entrepreneurs is to clearly articulate the “why now?” for their fundraise. Connecting the startup’s story to a critical milestone that can be achieved with the new capital before the end of Q1 2026 provides a compelling narrative for investors to champion the deal within their partnerships. Transparency about timing is also crucial. Founders should not shy away from stating their goal to identify a lead investor within a clear timeframe, a move that is seen as professional rather than pushy.
The VCs with Capital to Deploy
Despite a challenging fundraising climate globally, a number of African-focused VC firms have successfully closed new funds in late 2024 and 2025, making them key players to watch in the coming months. These firms are now actively seeking to invest their fresh capital, providing a vital source of funding for the continent’s burgeoning startups.
Among the notable firms with significant dry powder are:
- Partech Africa: With the closing of its second Africa-focused fund, Partech continues to be a major force in the ecosystem, backing startups from seed to growth stage.
- TLcom Capital: The firm’s TIDE Africa Fund II provides it with substantial capital to invest in early-stage ventures across the continent.
- Norrsken22: This Africa-focused fund has been actively deploying capital and is on the lookout for scalable, tech-enabled businesses.
- 4DX Ventures: Known for its high volume of early-stage deals, 4DX Ventures remains a crucial source of early stage funding for startups across various sectors.
Access over 150 others HERE.
The renewed investor confidence is already being reflected in the number of funding announcements in late 2024 and the first half of 2025. Startups across various sectors, from fintech and cleantech to AI and healthtech, have successfully raised significant rounds.
For instance, the first quarter of 2025 saw a strong rebound in funding, indicating that the much-anticipated deployment of dry powder is underway. This positive trend is expected to continue as more VCs look to finalize their investment dockets for the year.
While challenges in the fundraising landscape persist, the current climate presents a unique opportunity for well-prepared founders. With a clear strategy, a compelling narrative, and a proactive approach to engaging with investors, African startups can leverage the year-end urgency to secure the capital needed to fuel their growth in 2026 and beyond. The message from the market is clear: for those who are ready, it’s go time.
Explore the complete dataset of African VCs with capital still ready for deployment HERE.