The first rule of fundraising is knowing where the money is. As some investment funds reach the end of their lifecycle, or “sunset,” a founder’s knowledge of which VCs are actively deploying capital can make all the difference.
Following a period of global economic headwinds that saw a dip in funding in 2024, the African tech ecosystem has shown resilience. The market is witnessing a cautious rebound in 2025, with industry data suggesting over $2 billion has been raised by startups across the continent so far. More importantly, a significant amount of “dry powder” — committed but unallocated capital — sits with venture firms, ready to fuel the continent’s most promising startups. This is creating a favourable window for founders ready to capitalise on year-end momentum.
The Year-End Hustle Is Real
The pre-holiday rush to close deals is a familiar narrative in the global VC scene, and Africa is no exception. While the seasonal lines might be less rigid, the pressure on fund managers to meet annual deployment targets is a significant driver of Q4 activity. Investors who may have been cautious in the first half of the year are now looking to back promising ventures to build out their 2025 portfolios.
This dynamic creates a competitive but opportunity-rich environment for founders. The key is to frame the fundraising narrative with a sense of urgency.
“Founders need to clearly articulate the ‘why now?’ for their fundraise,” explains a partner at a Lagos-based firm. “Connecting your story to a critical milestone you can hit with this capital before the end of Q1 2026 gives investors a compelling reason to champion your deal internally before the books close for the year.”
Transparency about timing is also a sign of professionalism, not pushiness. Clearly stating a goal to identify a lead investor within a defined timeframe, for example, by late November, helps VCs manage their own pipeline and signals that you are running a structured process.
VCs with Fresh Capital to Deploy
Despite a challenging global climate for fundraising, a number of Africa-focused VC firms have successfully closed new funds in late 2024 and 2025. These firms are now among the most active players on the continent and are a primary target for founders.
Here are some of the VCs with significant dry powder looking for deals before the year runs out:
Access over 157 others HERE.
Flourish Ventures This global fintech-focused firm has a new $350 million fund and a strong appetite for African startups transforming the financial services landscape.
- Fund Size: $350 million
- Typical Cheque Size: $2 million — $7 million
- Focus: Fintech, Insurtech, and startups embedding financial services. Primarily targets companies with demonstrated traction.
Plus Venture Capital (+VC) Based in Abu Dhabi, +VC is an active early-stage investor with a dedicated focus on the Middle East and North Africa (MENA) region. Its new fund makes it a key player for founders in Egypt, Morocco, and Tunisia.
- Fund Size: $60 million
- Typical Cheque Size: Up to $100,000
- Focus: Early-stage, sector-agnostic startups in North Africa.
P1 Ventures P1 Ventures recently announced a second fund to back founders building foundational technology for Africa’s key sectors. The firm is known for investing at the earliest stages and providing deep operational support.
- Fund Size: $50 million
- Typical Cheque Size: $250,000 — $2,500,000
- Focus: Seed, Pre-Series A, and Series A rounds in Fintech, E-commerce, Healthcare, Logistics, and Insurance.
Digital Africa With capital backed by European development finance institutions, Digital Africa is focused on bridging the funding gap for early-stage, high-impact startups, with a particular emphasis on the Francophone region.
- Focus: Sector-agnostic, with a mandate to support early-stage ventures across Francophone Africa.