According to the latest report by Africa: The Big Deal, in 2024, African startups raised US$2.2 billion in grants, debt, and equity (not including exits).
In contrast to the $2.9 billion raised by startups in the continent in 2023, this represented a nearly 25% decrease.
188 ventures raised $1 million or more in 2024 (excluding exits), which is 10% less than in 2023, according to the report.
In terms of exits, 22 were made public last year as opposed to 20 in 2023.
Just about $800 million was raised in H1, the slowest semester since 2020, which is mostly to account for 2024’s relative underperformance. The latter half of the year saw a significant upturn, though, as $1.4 billion was raised in H2 alone (+25% YoY and +80% compared to H1), making it the second-best semester since the start of the “funding winter” in mid-2022. The two massive transactions of Moniepoint and Tyme Group in Q4—the first such occurrences since early 2023—were partially, but not entirely, responsible for the statistics.
The fact that the YoY reduction in funding is primarily due to a decline in loan funding is another reason to stay optimistic. In 2024, the debt portion of the total investment disclosed was still substantial (30%), although it was lower than in 2023 (38%). The total equity raised in 2024 ($1.5b) was “only” -11% below 2023 estimates ($1.7b), even though debt shrank -40% YoY. The fact that equity levels are stabilizing after incurring the most in 2023 (-57% YoY) is quite promising.
Read more on Tech Gist Africa:
How Africa is Positioning Itself as a Key Player in the Global Tech Economy
How Africa’s Tech Ecosystem is Attracting Global Investors and Technology Giants
Funding the Future: The Landscape of Venture Capital in African Startups