Agriculture Attracts Renewed Interest Despite Challenging Funding Year

Despite a decline in overall funding, agriculture and agtech startups captured the strongest interest from Africa’s angel investor networks in 2025. According to a new report by the African Business Angel Network (ABAN), this renewed focus on agriculture signals confidence in its long-term potential despite current market headwinds.

The ABAN report, developed in partnership with Briter Intelligence and the United Nations Development Programme (UNDP), surveyed over 60 angel investors across Africa. While agritech funding decreased to $168.1 million in 2025 from $206.9 million in 2024—a trend mirrored across other sectors like fintech and energy—the growing interest from angel networks suggests they see value in early-stage agricultural ventures.

Key Findings:

• Sector Preference Shift: Agriculture topped the list of investment interests for angel networks, although it ranked second among individual investors (behind fintech).
• Cautious Approach: A majority (35%) of surveyed investors now prioritize startups generating revenue, reflecting a more risk-averse environment.
• Smaller Ticket Sizes: Individual angel investments remained relatively small, with over 90% writing cheques under $25,000 in 2025.
• Ecosystem Constraints: Limited exit opportunities and deal flow continue to challenge the growth of angel investment across Africa.

“Angel investing must be recognized as part of Africa’s growth infrastructure,” noted Fadilah Tchoumba, CEO of ABAN. “With constrained venture funding due to global economic shifts, angel investors can play a more influential role in determining which startups receive crucial early-stage support.”

As African economies seek sustainable development pathways, this focus on agriculture highlights the potential for targeted investment to unlock growth opportunities across the continent.