In 2024, African startups secured $2.2 billion through equity, debt, and grants (excluding exits). In the first half of the year (H1), the continent’s ventures raised just under $800 million.
Over the years, Africa’s tech ecosystem has emerged as a hub of innovation, drawing global attention with its rapid growth and ability to tackle pressing challenges through technology.
However, the sector’s journey hasn’t been without hurdles, with global economic conditions casting shadows over its funding progress.
In 2024, African startups secured $2.2 billion through equity, debt, and grants (excluding exits), according to Africa: The Big Deal. While this figure reflects a significant influx of capital, it represents a 25% decline compared to the $2.9 billion raised in 2023.
Despite the drop in total funding, the ecosystem remained resilient, with 188 ventures raising $1 million or more during the year — a decrease of just 10% from the previous year.
The underwhelming performance of 2024 in African start-up funding can largely be attributed to a slow start. In the first half of the year (H1), the continent’s ventures raised just under $800 million. It has been described as the quietest semester of startup funding in Africa since late 2020.
However, the second half of the year (H2) brought a strong rebound, with $1.4 billion raised. This marked a 25% year-over-year increase and an 80% surge from H1. The recovery made H2 2024 the second-strongest semester since the onset of the funding slowdown.
A notable boost in H2 came from two significant deals in Q4 involving Moniepoint and Tyme Group, which not only drove the numbers but also minted two new unicorns back-to-back. These back-to-back milestones were the first of their kind since early 2023.
Business Insider
