Partech secures over $300m in second fund to back African startups

Key Takeaways

Against the backdrop of global venture capitalists and institutional investors scaling back their investments in Africa, the recent closure of Partech Africa's fund holds significant importance. The continent experienced a notable decline in investor activity, with a 50% decrease in 2023 compared to the previous year, as highlighted in a report by Partech (summarized here). This retreat, driven by global economic shifts and local challenges, resulted in reduced venture capital inflows for African startups, ranging between $2.9 billion and $4.1 billion last year, down from $4.6 billion to $6.5 billion in 2022. Despite these challenges, Partech's African fund stands out among several notable funds that have emerged on the continent in the past year. Other large-sized funds such as Norrsken22, Al Mada, and Novastar’s Africa People + Planet have also made their mark. Additionally, firms like Enza Capital, Equator, Knife Capital, and the E3 Low Carbon Economy Fund for Africa (E3LCEF) have closed sizable funds, underscoring continued investor interest in Africa's growth potential.