Early-Stage Funding in Africa: Insights from GITEX Africa 2025’s Top VC Panel

Each brought their own perspective to a key question: Who is supporting early-stage African startups—and how do we ensure the continent’s next unicorns emerge despite a challenging funding climate?

The conversation began with a reality check. According to Mareme Dieng, there is no shortage of funding in Africa—at least not at the Series A and B stages. The real problem lies earlier in the startup lifecycle.

“Investors are under a lot of risk pressure,” she said. “But deals aren’t flowing in the early stages. There are real concerns about market capacity and the ability to build strong pipelines.”

The entire discussion agreed: While venture capital is inherently risky, the African ecosystem faces unique structural constraints. If stakeholders want a different outcome, they need a different approach.

“VC is a risk-driven asset,” Mareme emphasized. “If we want to see change, we need to change our approach.”

When asked how investors should respond to the ongoing funding drought, Dario Giuliani offered a broader perspective. “Africa was once considered a ‘dark continent’ for investment and has now moved into the spotlight,” he said.

Over the past decade, Africa has seen a surge in capital inflows – from a few million dollars to several billion dollars annually. Countries like South Africa, Nigeria, Egypt, and Kenya (the “Big Four”) have led the way. Now, Dario said, attention is slowly expanding to the ecosystems surrounding these centers.

One notable trend, he added, is the rise of specialized capital providers: funds dedicated to Black founders, women-led startups, and other underrepresented groups. “The narrative is changing,” he said. “There is more early-stage capital today than ever before, but we need to ensure it reaches the right places.”

While capital has increased significantly in some key markets, other parts of the continent remain ignored. Thomas Bigagli spoke openly about this, saying”Some countries are continuously attracting investment, while others are being left behind,” he said.

He called for targeted measures to close this gap. “We need to identify and support founders in underfunded regions. We already support many entrepreneurs, but we need more stakeholders – governments, companies, and communities.”

Thomas believes the future of African innovation is clear. “Africa is already the future,” he said. “But we all have to do our part.”

For founders looking to raise capital in the early stages, the panel had a clear message: Build substance before you step into the spotlight.

“Focus on building a sustainable company,” said Ali Mokhtar. “If your foundations are strong, the funding will come.”

Dario Giuliani urged founders to understand their true funding needs. “Be clear about what you’re building,” he said. “Not everyone needs to raise money to grow. Ask yourself: Can I scale slowly and sustainably, or do I need external funding now?”

The panel agreed that this reorientation of founder expectations is key to building resilient companies that can transcend trends.

Tip for Investors: Rethink Strategy

Investors were also encouraged to adapt. “You can’t simply apply the US deal structure to Africa,” said Thomas Bigagli. “You need strategies tailored to the local market.”

From flexible financing models to tailored risk assessments, the panel encouraged investors to be innovative not only in their financing, but also in how they do it.

Mareme Dieng concluded this point with a reminder: “Investors should do their due diligence. There are opportunities across the continent, but discipline is key.”

Despite current challenges, the tone of the panel was optimistic, even provocative. Africa’s unicorn pipeline may be under pressure, but it is far from dry.

The consensus? The continent has the talent, the ideas, and the markets. What’s needed now is smarter capital, broader participation, and a shift from copycat strategies to Africa-centric innovation models.

As Dario said: “Africa was once underserved. Today, it’s on the radar. The opportunities remain enormous, and we’re just getting started.”