Nairobi, April 24 -- In 2023, with $3.5 billion raised from 547 deals, African venture capital (VC) experienced a significant downturn. Year-on-year, total funding and deal count declined by 46 percent and 28 percent respectively. This downturn marks a significant phase in the nascent and turbulent African VC journey. From challenges such as the Covid-19 pandemic and the collapse of Silicon Valley Bank to opportunities like the 2021 VC bull run, these events have collectively influenced African VCs to adopt a more cautious investment approach, resulting in more detailed due diligence.

Due diligence represents a critical phase in the investment process, where investors examine various aspects of a startup to ascertain its investment readi...