After spending ten years traveling across developing countries in both Asia and Africa, Axel Peyriere, the CEO of Auto24—a used car marketplace—began investing in African startups as an angel investor in 2011. In the fourteen years since he started writing cheques for startups on the continent, he has backed more than 30 companies, including Julaya, Bumpa, Monaco, Curacel, Termii, Grey, Remedial Health, and many 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 shared with TechCabal via email.
Founders stepping into the role of angel investors is a vital element of any thriving tech ecosystem. When founders who have achieved success become angel investors, they bring with them valuable firsthand experience and insights, having already navigated the challenges early-stage startups often face.
Outside of fintech—which is known for offering some of the highest returns in Africa—Axel Peyriere has largely focused his investments in the areas where he is most involved as a founder: marketplaces, e-commerce, and mobility.
As the co-founder and CEO of AUTO24, and as an entrepreneur myself, I see immense potential within the mobility sector—from the evolution of car ownership models to the rise of electric vehicles and the development of digital infrastructure for vehicle sales and financing,” he said. “This space offers vast opportunities, particularly in markets where access to mobility remains informal or inefficient.”
Founders often bring more empathy and generosity to the table when acting as investors. This makes the early-stage funding environment less predatory and more focused on supporting founders, helping to establish a cycle of reinvestment and mentorship that plays a vital role in nurturing young ecosystems.
TechCabal interviewed Axel Peyriere to gain insight into his investment strategy and understand why he chooses to support African startups.
Reflecting on your journey, was there a particular event or opportunity that inspired you to begin investing on the continent?
There wasn’t a single defining moment. Instead, it happened gradually. I initially started investing in Asia, and, over time, became increasingly involved in the African tech ecosystem. As an entrepreneur, investing became a way for me to give back, share the knowledge I had acquired, and also learn from the new generation of innovators.
What characterises your investment thesis today?
At the early stage, it’s all about the founders and the team. I choose to back people who are addressing real and pressing issues in large, underserved markets. I look for strong local knowledge, the ability to execute, and resilience. I’m particularly interested in tech-enabled solutions across fragmented sectors like logistics, fintech, e-commerce, and mobility.
Do you have a preferred investment stage and cheque size? What’s the reason for this focus?
Naturally, I invest at the early stages—pre-seed and seed. The cheque size can vary widely depending on whether I’m investing independently or via a syndicate, SPV, or club deal. I prefer to stay flexible and tailor my approach based on the opportunity and the composition of other investors involved.
How do you usually come across new investment opportunities?
Initially, I actively sought out deals. Over time, as I built a track record, opportunities started coming my way—through founders, fellow angels, venture capitalists, or investment platforms. These days, it’s a blend of inbound interest and strategic sourcing.
Are there specific signals or metrics you look for before taking a meeting?
I typically look out for strong founding teams, a deep obsession with the problem they’re solving, and some level of execution—even if it’s still rough around the edges. What stands out to me is clarity of thought and a realistic grasp of the market. While traction is a good indicator, I tend to value grit and local insights more at this stage.
Which investment are you proudest of so far, and what made it a standout success?
One that stands out is Julaya. The team is solid, they’re executing across different regions, and they’ve clearly found market fit with strong momentum behind them. That said, there are several others I’m proud of for various reasons—whether it’s their resilience, innovation in product, or simply the relentless drive of the founders.
Conversely, can you share a deal that didn’t work out as planned?
LazerPay is one example. It had significant potential, but things didn’t unfold as expected. That experience emphasized for me just how critical transparency and consistent communication from founders are—these are now absolute non-negotiables.
Have any of your investments resulted in a successful exit—full or partial?
Yes, I’ve had a few exits via secondaries, though they often take longer than initially anticipated. The biggest hurdle remains liquidity. Africa’s exit environment is still developing, and secondaries can be difficult to execute.
What have been the biggest challenges in securing exits for African startups?
One key challenge is getting startups to a point where secondaries are even possible. Many markets still lack the depth needed for robust follow-on funding and acquisition activity. While progress is being made, exits are still the major bottleneck for many angel investors on the continent.
When committing relatively small cheques, how do you balance diversification with follow-on participation?
My approach is to build a wide-ranging, diversified portfolio. When an opportunity starts to break out, I try to follow on if the potential upside is strong and I believe I can contribute meaningfully. Participating in syndicates and club deals also helps me increase exposure without concentrating too much risk.
What kind of relationships do you foster with larger VCs or co-investors?
I strive to maintain a collaborative approach. I regularly connect my portfolio companies with institutional VCs and share deal flow with them. It’s all about contributing to a stronger ecosystem—ensuring founders get the support and networks they need at every stage.
If you could rewind to your very first investment, what advice would you give your past self?
Be more patient. Things usually take longer than you expect. Prioritize the founders over the initial idea. And above all, set expectations early—especially around governance, regular updates, and reporting.
How has your perspective on the African tech ecosystem changed since you started?
The ecosystem feels much more structured now—with an increase in players, capital, and knowledge sharing. That being said, I’ve come to realise that trying to “tropicalise” Western models doesn’t always yield results. The most effective solutions are those built from the ground up, tailored to local conditions. I didn’t fully grasp that in the early days.
Which countries or regions within Africa do you see as emerging hotspots?
Francophone West Africa is gaining momentum—countries like Côte d’Ivoire, Senegal, and even Guinea are heating up. In Southern Africa, there’s strong traction in both B2C and B2B sectors. East Africa continues to be a solid region, and Ethiopia could become a key player if the regulatory environment improves.
Beyond capital, do you offer support to startups you invest in?
Absolutely. I make my network available, provide feedback on strategy and fundraising, and spend quality time with founders to exchange ideas. I learn a lot from them as well. The relationship is very much two-way, and I aim to be as accessible as I can.
What are the common hurdles founders face in the African market?
Founders often deal with unpredictable regulations, informal competitors, payment challenges, and infrastructure limitations. They’re constantly in firefighting mode. I try to help them take a step back, set clear priorities, and build resilient systems—whether that involves partnerships, technical decisions, or lean operational strategies.
When you think about the continent’s tech landscape five or ten years from now, what do you hope your role has been?
I’d like to think I contributed to creating a virtuous cycle—supporting founders early on, assisting their growth, and enabling meaningful exits. Exits, whether full or partial, and secondaries will help inject liquidity into the ecosystem, making it easier for new entrepreneurs to secure funding. My hope is to foster a self-sustaining ecosystem where today’s founders evolve into tomorrow’s investors and mentors.
What factors would accelerate the ecosystem’s growth the fastest?
We need more regional integration, stronger intra-African capital flows, supportive regulatory frameworks, and—perhaps most importantly—more successful founders reinvesting in the ecosystem. When local entrepreneurs recycle both their capital and experience, it elevates the entire ecosystem. That’s how true maturity happens.
Are there any new approaches or structures you’re considering to increase your impact?
Yes, I’m currently exploring the idea of launching a micro fund or a syndicate structure to support more founders. Additionally, I’m working on forming a Middle East–Africa investment club to strengthen capital and knowledge bridges between the Gulf region and African startups
