Why Silicon Valley VCs Are Paying Attention to Africa Now

The Macro Shifts

Ten years ago, most Silicon Valley investors couldn't name an African startup. Today, firms like Andreessen Horowitz, Tiger Global, and SoftBank have made significant investments in African companies. What changed?

The answer is a combination of factors: successful exits like Paystack proved that African startups can generate returns. Mobile penetration and internet access have expanded dramatically. And a new generation of founders—many with experience at global tech companies—are building more sophisticated businesses.

What Global Investors See

Africa offers something increasingly rare: genuine greenfield opportunity. In most global markets, every category has well-funded incumbents. In Africa, entire sectors remain underserved. The combination of young demographics, rising GDP, and improving infrastructure creates a setup that looks a lot like other emerging markets at inflection points.

The exits have helped too. When Stripe acquires Paystack or when Flutterwave reaches a $3B valuation, it creates proof points that make future investments easier to justify.

What This Means for Founders

More global capital means more options, but it also means more sophisticated investors with higher expectations. Founders raising from international VCs need to be fluent in their language—understand what metrics they care about, how they think about market size, and what they expect from portfolio companies.