Axel Peyriere’s guide to angel investing in Africa

After spending a decade travelling across developing countries in Asia and Africa, Axel Peyriere, the CEO of Auto24, a used car marketplace, started investing in African startups as an angel investor in 2011. In the fourteen years since he started cutting cheques for African startups, he has backed over 30 startups including Julaya, Bumpa, Monaco, Curacel, Termii, Grey, Remedial Health, and several others. 

“Angel investing came naturally—as a founder myself, I wanted to give back, support other entrepreneurs, and keep learning by investing in people tackling problems I understood firsthand,” Axel Peyriere told TechCabal via email. 

Founders becoming angel investors is an essential part of any tech ecosystem. When successful founders become angel investors, they bring firsthand lessons, as they understand the pain points of early-stage startups. 

Outside of fintech—which offers some of the highest returns in Africa— Axel Peyriere has primarily invested in sectors where he is most active as a founder: marketplaces, e-commerce, and mobility.

“As co-founder and CEO of AUTO24 and an entrepreneur myself, I see massive potential in the mobility space—from car ownership models to EV adoption to digital infrastructure for vehicle sales and financing,” he said. “There’s a huge play in this field, especially in markets where mobility access is still informal or inefficient.

Founders also tend to be more empathetic and generous with terms as investors, making the early funding environment less predatory and more founder-first, creating a cycle of reinvestment and mentorship that is crucial for the growth of young ecosystems.

TechCabal spoke to Axel Peyriere to understand his investment process and why he’s backing African startups. 

Looking back, was there a particular moment—or opportunity—that convinced you to start writing cheques on the continent?

There wasn’t one specific moment. It was more of a natural progression. I started investing in Asia, and over time, I became more involved in the African tech ecosystem. Being an entrepreneur, I saw investing as a way to give back, share what I had learnt, and also gain fresh perspectives from the next generation of builders.

What defines the Axel Peyriere investment thesis today?

At the early stage, it’s all about the founders and the team. I invest in people solving real, tangible problems in large, underserved markets. I look for local insights, execution capabilities, and resilience. I’m especially drawn to tech-enabled models in fragmented sectors like logistics, fintech, e-commerce, and mobility.

Do you have a preferred stage and cheque size when investing? Why have you chosen to focus on that range?

Naturally, I invest at the early stage—pre-seed and seed. The cheque size can vary significantly depending on whether I invest solo or through a syndicate, SPV, or club deal. I like being flexible and adapting to the opportunity and who else is around the table.

How do you typically discover new opportunities?

At first, I scouted deals actively. Over time, as you build a track record, opportunities come to you—through founders, other angels, VCs, or platforms. Now it’s a mix of inbound and strategic sourcing.

Are there specific signals or metrics you look for before taking a meeting?

Strong founding teams, obsession with the problem, and some form of execution—even if scrappy. I like to see clarity of thought and an understanding of the market realities. Traction is good, but grit and local knowledge matter more at this stage.

Which investment are you proudest of so far, and what made it a standout success?

One that comes to mind is Julaya—a strong team executing across borders with clear market fit and strong momentum. But there are many I’m proud of for different reasons: resilience, product innovation, or just pure founder energy.

Conversely, can you share a deal that didn’t work out as planned?

LazerPay is a good example. Great potential, but things didn’t go as planned. It reinforced the importance of transparency and founder communication—two things that are non-negotiable for me now.

Have any of your investments resulted in a successful exit—full or partial?

Yes, I’ve had a few exits through secondaries, though it often takes more time than initially planned. The biggest challenge remains liquidity—Africa’s exit landscape is still maturing, and secondaries are not always easy to come by.

What have been the biggest challenges in securing exits for African startups?

Reaching a stage where secondaries are viable. Most markets still lack depth when it comes to follow-on capital and acquisition activity. It’s slowly improving, but exits remain the bottleneck for many angel investors.

When committing relatively small cheques, how do you balance diversification with follow-on participation?

I aim to build a broad, diversified portfolio. When there’s a breakout opportunity, I follow on if I believe the upside is significant and I can add value. Syndicates and club deals help scale exposure without concentrating risk too much.

What kind of relationships do you foster with larger VCs or co-investors?

I try to stay collaborative. I often help my portfolio companies connect with institutional VCs, and I also share deal flow with them. It’s about ecosystem building—supporting founders at every stage and making sure they have the right people around them.

If you could rewind to your very first investment, what advice would you give your past self?

Be patient. Things move slower than you expect. Focus more on the founders than on the idea. And be clear about expectations early—especially around reporting, updates, and governance.

How has your perspective on the African tech ecosystem changed since you started?

It’s more structured now—more players, more capital, more knowledge sharing. That said, I’ve learnt that “tropicalising” Western models doesn’t always work. The best solutions are built ground-up for local realities. I underestimated that early on.

Which countries or regions within Africa do you see as emerging hotspots?

Francophone West Africa is heating up—Côte d’Ivoire, Senegal, even Guinea. Southern Africa is seeing strong B2C and B2B activity. East Africa remains a stronghold, and Ethiopia is the one to watch if regulatory conditions improve.

Beyond capital, do you offer support to startups you invest in?

Yes—always. I open my network, share feedback on strategy or fundraising, and spend time with founders to exchange ideas. I learn from them too. It’s a two-way relationship, and I try to be as accessible as possible.

What are the common hurdles founders face in the African market?

Unpredictable regulations, informal competition, payment issues, infrastructure gaps… Founders are constantly firefighting. I try to help them zoom out, prioritise, and build resilience—whether through partnerships, tech choices, or lean operations.

When you think about the continent’s tech landscape five or ten years from now, what do you hope your role has been?

I hope I’ve helped shape a virtuous circle—supporting founders early, helping them grow, and enabling successful exits. Full or partial exits and secondaries will bring much-needed liquidity into the ecosystem, allowing new founders to access funding more easily. It’s about building a long-term, self-reinforcing ecosystem where today’s founders become tomorrow’s investors and mentors.

What factors would accelerate the ecosystem’s growth the fastest?

More regional integration, better intra-African capital flows, enabling regulations—and importantly, more successful founders reinvesting back into the community. When local entrepreneurs recycle capital and experience, the whole ecosystem levels up. That’s how ecosystems mature.

Are there any new approaches or structures you’re considering to increase your impact?

Yes, I’m exploring setting up a micro fund or syndicate structure to back even more founders. I’m also working on a Middle East–Africa investment club to better bridge capital and knowledge between the Gulf and African startups.