Why Launch Africa returned $2.5 million to investors after 11 exits :
Launch Africa, the pan-African venture capital firm with more than 180 portfolio startups, has returned $2.5 million to investors in its first fund after completing 11 exits, joining the small group of African investors that have actually returned liquidity to limited partners (LPs).
African venture capital has had a returns problem. Funds were raised aggressively between 2018 and 2022, deployed across hundreds of startups, and then hit the same wall as the rest of the global venture market in 2022, when exits began drying up.
According to Carta, the cap-table software firm, only just over half of 2020-vintage funds had returned any capital to LPs by the end of 2025, and roughly 15% of the nearly 2,900 US venture funds made their first distribution only during 2025. In Africa, the picture has been worse.
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