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.

Over the past decade, angel networks across Africa have invested $35 million into more than 1,200 early-stage startups, a solid foundation, but tiny compared to the continent’s potential. 

In the East African economic block alone, 18 active networks, from Nairobi Business Angel Network to Ajax Capital Group, form one of the region’s most active clusters. However, real capital flows usually lag behind policy results.

At ABAN Congress 2025 in Lagos, themed “Accelerating Local Capital Participation,” this gap will be addressed. African startups raised $289 million in 2025 alone, with 90% in equity deals, revealing a shift toward more structured, scalable investment. 

Angel syndicates now account for 46% of investments, enabling pooled capital, shared risk, and larger deals. Catalytic Africa, ABAN’s co-investment platform, has mobilised 10× more capital since 2022, backing startups across 15+ countries. Despite these advances, we wonder why policy is not translating into capital in the hands of founders?

To understand why these policies haven’t fully translated into funding, Techeconomy spoke with Martin Warioba, managing partner at Warioba Ventures and a leading voice in East Africa’s investment ecosystem, to dissect the gap between policy intentions and actual capital deployment, and explore ways to turn investor-friendly frameworks into real-world funding.

Turning Policy into Capital

On the disconnect between policy and execution, Warioba says: “Policies like the Startup Act or tax incentives mainly exist but are undermined by unclear implementation guidelines, slow regulatory approvals, and minimal awareness among local stakeholders.”

“The real gap is execution muscle and ecosystem feedback loops. Without collaboration between policymakers and actual capital deployers, policies risk becoming symbolic rather than catalytic.”

A policy in East Africa that has already had a measurable impact on early-stage investment is Rwanda’s Capital Markets Authority (CMA) regulatory framework for Collective Investment Schemes (CIS).

“This has provided a clear path for registering venture capital funds and has attracted cross-border investment. Warioba Ventures has leveraged this policy to structure its Pan-African VC fund with domiciliation in Kigali.

“Catalytic Africa’s matching fund could be another example – though not a policy per se – has operationalised policy intentions by directly channelling local and foreign capital into early-stage startups.”

While Rwanda shows what’s possible with the right framework, scaling impact across East Africa also requires active participation from angel networks.

The Role of Angel Networks

Angel investor networks, Warioba explains, are essential to bridging the gap between policy and capital: “Angel networks are the frontline of early-stage capital. They see firsthand what policies work, where frictions lie, and what founders need to thrive. Angel networks can translate these insights into actionable policy proposals – on tax breaks, capital gains treatment, investor protection, and cross-border capital mobility.

“More importantly, angel networks can pilot co-investment models, like Catalytic Africa, that demonstrate what’s possible when policy meets private initiative.”

Warioba stresses that inclusive policy must extend beyond urban hubs: “Governments must decentralise innovation infrastructure – innovation hubs, access capital, and capacity building programs – beyond major cities. Policies should include incentives for investors who support startups in rural or underserved regions.

“Digital infrastructure and interoperable payment systems remain foundational to building inclusive ecosystems across East Africa’s secondary cities and border regions.”

On government agencies to partner with in order to unlock capital flows immediately, he says: “I will work with the Ministry of Finance to establish the Startup Investment Guarantee Facility backed by public and philanthropic capital.

“This facility would de-risk private and foreign capital entering early-stage startups through first-loss guarantees and co-investment structures into early-stage funds managed by licensed local GPs. This would signal long-term national commitment and crowd in institutional and private participation across the region.”

With ABAN Congress 2025 approaching, Warioba stresses that policies alone do not move capital for any startup; but combined with strategic co-investment models, engaged angel networks, and targeted government initiatives, East Africa has the potential to become a thriving region where startups can scale successfully.