As 2024 wraps: signals that matter and bets on African VC’s future

As 2024 wraps, it’s impossible not to reflect on the rollercoaster year African VC just experienced. The bubble inflated, popped, and left many scrambling.

But here’s the real story: beneath the noise, some of the most important foundations for African startups and investors are quietly being built.

This year wasn’t about the hype; it was about clarity and resilience.

Signals that matter
At Raise, we launched 23 signals, engaging 650+ readers across the ecosystem. We focused on what really drives the future: ownership, liquidity, and governance.

The key takeaway? Liquidity is the bottleneck. Without it, the African VC ecosystem will continue to stall.

But we also learned a few things:
• Funding ≠ success. Raising $2 million isn’t a win—it’s dilution. We should start saying, “The company sold 15% of its equity,” instead of celebrating the dollar amount.

• AI is reshaping how startups build. What cost $2 million to build in 2023 now costs $200K—and will cost $20K by 2025. This is rewriting how founders think about capital and enterprise valuations.

Bets for 2025
Here’s what we’re betting on for the year ahead:
 
1. Leaner founders with less capital.
Founders will raise smaller rounds and build with profitability from day one. Sustainable scaling will define success.

 2. More private equity and strategic exits.
South Africa’s corporate VCs and fintech giants will lead acquisitions, while cash-and-equity deals gain traction in more mature markets.

 3. Tougher returns for GPs.
Smaller rounds mean fewer opportunities to find alpha, forcing GPs to rethink their strategies.

 4. Web3 will unlock liquidity.
We’re bullish on digital assets and the potential to tokenize African equity. Stablecoins and real-world assets could unlock liquidity for both private equity and the African VC asset class.

2024 was an investors’ market, but 2025 will mark the shift back to a builders’ market: a founder-led African VC ecosystem. Founders will be at the center of driving innovation, defining markets, and building products with strong economics from the ground up.

The builders’ decade: 2025 to 2035
If these bets hold true, we’re heading into the next builders’ decade. African VC is still a small asset class—just a fraction of GDP across the continent—but it has the potential to drive transformative change.

At Raise, we’re making our own bets. Liquidity will be the unlock, and we’re doubling down on tools like cap tables, term sheets, and equity wallets to make it happen.

Here’s to the next wave of African founders, investors, and employees shaping the future. Cheers to the builders. Let’s get after it.