Venture Debt Hits Record High, Surpassing Equity Investment in Africa’s Startup Scene
- Venture debt has outpaced equity investment in Africa's startup ecosystem for the first time in 2025.
- Startups raised $1.6 billion in debt financing between January and September 2025.
- The surge in debt financing was driven by six major transactions totaling $1.1 billion.
The rise of venture debt as a primary financing option in Africa signifies a crucial shift in the investment landscape, potentially leading to more sustainable growth for startups. This trend could encourage more innovative financing solutions and diversify the funding sources available to entrepreneurs across the continent.
