The Rise of Angel Investing in Africa's Tech Scene

Angel investors are typically high-net-worth individuals who provide financial backing for small startups or entrepreneurs, often in exchange for ownership equity in the company. Unlike venture capitalists, they invest their own money and often take a more hands-on, mentorship-focused role.

With a young, tech-savvy population and a myriad of local challenges awaiting innovative solutions, Africa presents a unique opportunity. Angel investors are increasingly recognizing the potential for high returns by getting in on the ground floor of startups in sectors like fintech, healthtech, and e-commerce.

Beyond a great idea, angel investors prioritize a few key areas: a strong, coachable founding team with relevant experience, a large addressable market, a clear and scalable business model, and evidence of early traction (e.g., a minimum viable product, initial users, or early revenue).

Angel networks like the Lagos Angel Network (LAN) or Cairo Angels are playing a crucial role by pooling capital, sharing due diligence, and providing a structured environment for both investors and startups. These networks help de-risk investments and provide startups with access to a broader range of expertise.

To attract an angel investor, focus on networking within the ecosystem. Perfect your elevator pitch and have a solid pitch deck ready. Be transparent about your challenges and clear about your "ask". Most importantly, demonstrate your passion and unwavering commitment to solving the problem you've identified.