As the global venture capital market slows, Africa charts its own course

Is the continent seeing an uptick or downturn? This summer could decide

Although Africa’s venture capital totals remained afloat in the first quarter, some investors and tech stakeholders think there’s still a good chance the continent will join the rest of the world in a slowdown.

Experts told TechCrunch that most recently announced deals were finalized months before macroeconomic challenges — high-interest rates, war, inflation — hit the global VC landscape. This means there’s a lag in what’s reported as the current state of VC on the African continent. Thus, as startup funding decreases in the U.S. and Europe, the consensus is that the economic downturn will soon start affecting developing markets — Africa, in particular.

“The moment of truth will be the end of the summer,” Max Cuvellier, co-founder of The Big Deal, told TechCrunch. “August [and] September in particular because this is when we saw a boom last year.”


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Last year, African startups received more than $1 billion in funding during those two months. Anything less than that contributes to a year-over-year decrease, Cuvellier noted.

Stephen Deng, co-founder and partner at DFS Lab, added to that, saying that the same investors that have inflated valuations in later-stage U.S. companies are also the same investors marking up African companies.