Checkbooks and Caution: The Tentative Reset of African Tech Startups’ Missing Investors

After two years of defensive silence, write-downs and portfolio triage, a group of African tech investors are quietly doing something they had largely stopped doing since the downturn: writing new cheques.

The pattern isn’t a broad market rebound. It’s selective, cautious re-engagement by firms that either slowed their African activity sharply or shifted attention elsewhere after the 2021–2022 funding peak — and are now returning with tighter filters, smaller tickets and a bias toward revenue.

Across Nigeria, Egypt, Morocco, Kenya and South Africa, this “second-phase” investing is being led not by brand-new funds, but by familiar names recalibrating after losses, liquidity delays and tougher LP scrutiny.

From peak frenzy to portfolio repair

Between 2020 and 2022, many global and regional funds expanded aggressively into African tech. That period produced large, fast rounds — and, in some cases, fragile unit economics.

The correction that followed forced investors into:

Follow-on defence instead of new deals
Down-round negotiations and bridge financing
Exposure to shutdowns and restructurings in logistics, mobility, retail and B2C commerce

Several funds on the continent built reputations during the boom years, only to spend 2023–2024 largely focused inward. What’s changing now is not risk appetite — but deal discipline.

The funds re-accelerating

V8 Capital Partners (Nigeria)

Founded in Lagos in 2017, V8 Capital was active across fintech, health, education and logistics earlier in the cycle. After a quieter stretch, the firm has resumed steady deployment.

Recent investments span:

LegitCar Africa (automotive)
Nawah Scientific (laboratory services)
Chpter (business software)
Earlier African bets such as Zuri Health, Yemaachi Biotech and MarketForce

The common thread is operational businesses with revenue, rather than pure growth-at-all-costs software plays. The shift mirrors a broader Nigerian investor preference for cash-flow visibility.

Timon Capital (Nigeria)

Timon Capital, another Lagos-based firm, had an active early portfolio but slowed new African exposure after 2022. It has since resumed with a mix of fintech and B2B software:

OmniRetail (follow-on activity)
Waza
Kaya AI

The firm’s recent portfolio skews toward profitable or revenue-generating companies, reflecting how local funds are adjusting to longer exit timelines and thinner follow-on capital.

Global Ventures (US / MENA focus)

Florida-based Global Ventures was highly visible in African fintech and healthtech during 2020–2021, backing companies such as Ilara Health, Paymob, Helium Health and MAX. After a period of reduced visibility in African rounds, it has reappeared.

Recent activity includes:

The firm’s return suggests that international VCs who paused African expansion are not exiting the market — but are concentrating on category leaders rather than broad portfolio exposure.

Goodwell Investments (Netherlands)

Impact investor Goodwell had one of the most visible African portfolios in the previous decade, including companies in logistics and inclusive commerce. It also backed Kenyan e-commerce firm Copia and South African transport data startup WhereIsMyTransport. Both companies subsequently failed, alongside logistics startup Sendy. These high-profile failures in the ecosystem coincided with a more cautious phase.

In 2024–2025, the firm resumed activity, including:

OmniRetail
Inclusivity Solutions
Hinckley Recycling
Agent Banking Company

The emphasis is back on financial inclusion, essential services and environmental infrastructure — sectors with clearer impact metrics and more predictable demand.

Foundation Ventures (Egypt)

Cairo-based Foundation Ventures was deeply active in Egypt’s 2020–2021 surge, backing names in e-commerce and logistics. Post-boom, its pace dropped sharply.

Since then, the firm has continued with a smaller number of bets, now making at least two investments per year, including:

The reduced cadence reflects a structural shift: fewer, more concentrated positions, rather than the wide early-stage spray common during the boom.

FINCA Ventures (US impact investor)

FINCA Ventures’ most active African period was 2018–2020. After a slower phase, it has re-engaged through growth and expansion investments:

Sanivation
Karpolax
Affinity Africa

The focus remains on impact-linked sectors such as environmental services, agriculture and financial inclusion — areas less exposed to consumer demand shocks.

CRE Venture Capital (US)

CRE Venture Capital was highly active in Africa from 2017–2021, backing multiple breakout companies. Recent years show a narrower but continuing pipeline:

Rather than pulling back entirely, the firm appears to have shifted to fewer new names and more follow-on support.

Outlierz Ventures (Morocco)

Casablanca-based Outlierz Ventures had early exposure to North and Francophone African startups. After a quieter period, it has maintained targeted activity in:

The firm’s approach aligns with a regional trend: backing digitisation of traditional sectors such as distribution and retail, rather than consumer apps.

Knife Capital (South Africa)

Knife Capital’s most aggressive phase was earlier, but it continues to deploy into growth-stage, export-oriented businesses:

Optique
Sticitt
Simera Sense

Its model — helping companies expand internationally — has proven more resilient than hyperlocal, subsidy-driven consumer models.

Accion Ventures

Accion’s early African fintech portfolio was built during 2015–2021. Its recent deals show continued — but selective — exposure to African financial infrastructure:

Kuunda (Tanzania)
PayTic (Morocco)
PaidHR

The pattern reflects a view that embedded finance and B2B fintech rails remain investable despite the broader pullback.

What’s different this time

These firms are not behaving as they did in 2021. Across the group, several shifts are clear:

1. Revenue over vision

Most recent portfolio companies are already generating income. Pre-revenue experimentation has become harder to finance.

2. Sector rotation

Capital is moving toward:

Financial infrastructure
B2B software
Health services
Environmental and essential services

and away from pure consumer growth models.

3. Fewer deals per year

Several funds that once did 5–10 African deals annually are now doing 1–3, concentrating ownership and support.

4. Post-failure caution

Past portfolio collapses across logistics, retail and mobility have made Limited Partners (LPs) more demanding and Investment Committees (ICs) more conservative. Due diligence cycles are longer and governance requirements tighter.

Not a comeback — a reset

The reappearance of these investors does not signal a return to the funding peak. Total capital availability remains below boom levels, and late-stage liquidity is still constrained.

What it does show is that experienced funds are not abandoning African tech. Instead, they are redefining what “venture-backable” looks like on the continent: companies with revenue, operational discipline and a path to sustainability without continuous external subsidy.

In that sense, the investors coming back from a hiatus are not chasing growth stories. They are underwriting survival — and, selectively, durability.

Investor & Base	Context	Recent African Investments (2024–2026)	Notable Shift / Focus
V8 Capital Partners (Lagos, Nigeria)	Quieter deployment period post-2022 boom.	LegitCar Africa (Jan 2026), Nawah Scientific (Dec 2025), Chpter (Nov 2025), Zuri Health, MarketForce.	Steady redeployment; focus on operational businesses with revenue across automotive, healthcare, SaaS.
Timon Capital (Lagos, Nigeria)	Slowed new African exposure after 2022.	Tutor (Dec 2025), OmniRetail (Apr 2025), Waza (Aug 2024), Kaya AI (Feb 2024).	Portfolio skews towards profitable or revenue-generating B2B software and fintech companies.
Global Ventures (Florida, USA)	Avoided new African deals after peak 2020-2021 activity (e.g., Paymob, Helium Health, MAX).	Moniepoint (Oct 2025).	Highly selective return, concentrating on a single, category-leading fintech rather than broad portfolio spray.
Goodwell Investments (Amsterdam, NL)	Paused after high-profile portfolio failures (Copia, Sendy, WhereIsMyTransport).	Hinckley Recycling (Sep 2025), Inclusivity Solutions (May 2025), OmniRetail (Apr 2025), Agent Banking Co. (Jun 2024).	Geographic pivot towards Nigeria; renewed focus on financial inclusion, essential services, and environmental infrastructure.
Expert DOJO (Santa Monica, USA)	African deals dried up post-2022 after peak activity (Klasha, ThankUCash).	Ridelink (Uganda, Nov 2025).	Drastically reduced cadence; sole recent African investment is a later-stage round in a productivity software company.
DOB Equity (Veessen, NL)	Slowed after major portfolio challenges.	Spouts International (Jan 2025), MazaoHub (Jan 2025), Ilara Health (Feb 2024).	Continued East Africa focus with more thorough due diligence; emphasis on agritech, healthtech, essential goods.
Foundation Ventures (Cairo, Egypt)	Pace dropped sharply post-2021 surge (NowPay, Rabbit, Capiter).	Rabbit Mart (Apr 2025), Swypex (May 2024).	Average of ~2 investments per year, indicating fewer, more concentrated positions rather than wide spray.
FINCA Ventures (Washington DC, USA)	Slower phase after active period (2018-2020).	Sanivation (Jan 2026), Karpolax (Oct 2025), Affinity Africa (Feb 2025).	Sustained impact focus on environmental services, agriculture, financial inclusion—sectors seen as less exposed to consumer demand shocks.
CRE Venture Capital (New Jersey, USA)	Sparse activity after prolific 2017-2021 period (Flutterwave, SweepSouth, Sabi).	Flood (Aug 2025), Cutstruct (Mar 2025), Flowcart (Mar 2024).	Shift to fewer new deals and increased follow-on support for existing portfolio.
Vision Ventures (Dammam, KSA)	Subsided activity after concentrated Egyptian bets (2019-2021).	MoneyHash (Egypt, May 2025).	Single African investment in 2024-2025 period, indicating highly selective re-engagement.
Accion Ventures (Global Impact)	Quieter period after building African portfolio (2015-2021).	Kuunda (Tanzania, Apr 2025), PayTic (Morocco, Apr 2025), PaidHR, TransBnk.	Continued selective exposure to African financial infrastructure, particularly embedded finance and B2B fintech rails.