The 2025 Angel Investment Survey, released in partnership with United Nations Development Programme and research firm Briter, draws on responses from over 60 active angels and network managers.

It also uses transaction data tracked by Briter Intelligence.

The report shows that 29% of respondents have paused or reduced their investments. Another 41% said they are still investing but with caution, usually focusing on companies already in their portfolios.

Even so, the ecosystem is still expanding. There are now more than 75 active angel networks across the continent and participation is getting wider, with women making up 37% of investors and diaspora investors accounting for 33%.

Most individual angels are writing smaller cheques, with more than 90% investing below $25,000, up from 76% a year earlier. In contrast, angel networks are handling larger deals, with 8% reporting investments above $100,000.

Funding conditions are tight, comprising limited exit opportunities and liquidity which are the biggest concern, as revealed by 21% of respondents. Others pointed to weak deal flow, knowledge gaps, and the high cost of investing.

Despite these challenges, angels are still backing growth sectors. About 32% take a sector-agnostic approach, spreading investments across industries. Among those with preferences, agriculture and agritech rank highest for networks and remain a key area for individual investors.

Investment patterns also show a tilt towards lower risk. Many angels prefer startups that are already generating revenue and showing traction. At the same time, close to one in three invest across all stages of a company’s journey.

Performance data in the report shows strong outcomes for Africa’s startups that secure angel investment backing. It shows that 65% of companies in surveyed portfolios have raised follow-on funding.

Separate data from Briter Intelligence puts the follow-on rate at 40% for angel-backed African startups.

Some companies, the report notes, are growing without raising additional capital.

Hence, the findings reveal that the market is growing in size and diversity but facing high risks. Investors are still active, but they are more careful with capital and selective about where it goes.

The continent’s overall early-stage investment has grown from less than $300 million a decade ago to over $6 billion in 2022, but Lusophone markets account for only a fraction of this. 

The gap is structural, with limited recognition of angel investors, no tax incentives, and weak deal flow being stubborn barriers.

It’s a paradox worth pausing on, because lately, money can travel faster than ideas. How is it that entire linguistic and cultural blocks of Africa still struggle to tap into the continent’s rising tide of capital? 

And more importantly, what will it take to unlock these markets so that entrepreneurs in places like Cape Verde and Mozambique can access the same opportunities as their peers in Lagos, Nairobi, or Johannesburg?

To explore these questions, Techeconomy spoke with Rui Levy, president of the Business Angels Association of Cape Verde (ABAC), and one of the key voices representing Lusophone Africa at the upcoming ABAN Congress 2025 in Lagos. 

Rui Levy will be addressing how investor education and mentorship can strengthen this underdeveloped ecosystem and why building frameworks tailored to local realities is the first step towards sustainable growth.

TE: One of ABAN Congress 2025’s goals is to build the next generation of angel investors. How can Lusophone Africa grow both the pool of investors and their investment capacity at the same time?

Rui Levy: The starting point is recognition and awareness. In Lusophone Africa, angel investing is still underdeveloped, with no formal recognition of angel investors, no tax incentives, and very limited deal flow. To grow the pool, we need campaigns to demystify angel investing and showcase its impact. To grow capacity, we need structured vehicles, such as syndicates or investor clubs, and partnerships with the diaspora, which represents an untapped resource of capital and expertise. This twin approach, education plus collective investment, can accelerate growth.

TE: What does an effective investor education programme look like for someone just starting in angel investing?

Rui Levy: It must be foundational, practical, and relevant. Foundational, because most new investors in Lusophone Africa are unfamiliar with concepts like convertible notes, syndicates, or exits. Practical, because real case studies and opportunities to co-invest in small tickets are critical for learning by doing. Relevant, because it needs to be contextualised in Portuguese, and adapted to local realities where formal exits are rare and the entrepreneurial base is still fragile.

TE: How can mentorship between experienced and new investors strengthen Lusophone Africa’s early-stage investment ecosystem?

Rui Levy: Mentorship provides confidence and credibility. Experienced angels, whether local or from the diaspora, can accompany new investors in their first deals, explain risks and returns, and introduce them to best practices. This peer learning reduces mistakes, builds trust, and over time, creates a stronger and more professional community of investors.

TE: How can regional collaboration with other parts of Africa help accelerate the development of Lusophone Africa’s angel investing pipeline?

Rui Levy: Collaboration is essential to overcome the language and knowledge barriers. By connecting Lusophone investors with more mature ecosystems in East, West, or Southern Africa, we can learn from proven models, share best practices, and co-invest in cross-border deals. Translation, knowledge transfer, and ABAN’s continental platform can help Lusophone Africa integrate faster into Africa’s broader innovation and investment networks.

TE: What would success for Lusophone Africa’s angel investment ecosystem look like by the time ABAN marks its 15th anniversary?

Rui Levy: Success would mean that by ABAN’s 15th anniversary, Lusophone Africa has:

1. A formal legal status for angel investors
2. Tax and policy incentives in place
3. Active angel networks with regular deal flow, and;
4. Stronger bridges with the diaspora to mobilise smart capital.

Ultimately, success is when entrepreneurs in Lusophone Africa can count on a vibrant community of local and diaspora investors to back their growth, moving from informality and scarcity to a recognised and sustainable ecosystem.