After a good start in 2025, with nearly $300 million secured in January, investment in African Startups dipped.
By the end of March, only $50 million was raised, one of the worst months for African startup funding since late 2020.
As revealed in the latest report by ‘Africa: The Big Deal’, the impact was a first-quarter total of $460 million—just 5% lower than Q1 2024’s $486 million, but that’s hardly reassuring.
The previous year wasn’t great either, and this quarter now ranks as the second-worst since 2020. The number of startups raising at least $1 million remained stable at 52, keeping pace with the 2023–2024 average. But the bigger issue is no big deals, no momentum, and no sign of improvement in March.
As usual, the bulk of the money flowed into the continent’s established tech hubs. Kenya, Nigeria, and South Africa each pulled in roughly $100 million (24%, 24%, and 22% of the total, respectively).
Egypt followed with $61 million (14%). Togo made a rare appearance in the top five, solely due to Gozem’s $30 million Series B round.
Investors Shun African Startups, Makes March Worst Investment Month
After a good start in 2025, with nearly $300 million secured in January, investment in African Startups dipped.
By the end of March, only $50 million was raised, one of the worst months for African startup funding since late 2020.
As revealed in the latest report by ‘Africa: The Big Deal’, the impact was a first-quarter total of $460 million—just 5% lower than Q1 2024’s $486 million, but that’s hardly reassuring.
The previous year wasn’t great either, and this quarter now ranks as the second-worst since 2020. The number of startups raising at least $1 million remained stable at 52, keeping pace with the 2023–2024 average. But the bigger issue is no big deals, no momentum, and no sign of improvement in March.
As usual, the bulk of the money flowed into the continent’s established tech hubs. Kenya, Nigeria, and South Africa each pulled in roughly $100 million (24%, 24%, and 22% of the total, respectively).
Egypt followed with $61 million (14%). Togo made a rare appearance in the top five, solely due to Gozem’s $30 million Series B round.
