Start-up Funding in Africa: Q1 2025 Review
The start-up funding landscape in Africa saw some interesting trends in the first quarter of 2025. While the overall numbers were slightly lower compared to the same period in 2024, there were some positive signs to take note of.
In total, start-ups in Africa raised $460 million in Q1 through deals of $100,000 or more, excluding exits. This figure is just below the Q1 2024 total of $486 million, representing a 5% year-on-year decrease. However, it is worth mentioning that Q1 2024 itself was not a particularly strong quarter for start-up funding. In fact, Q1 2025 marks the second-lowest quarter for start-up funding since late 2020. Despite this, there is a more positive outlook when looking at the number of start-ups that raised at least $1 million in Q1, with 52 such start-ups aligning with the 2023-2024 average.
Unsurprisingly, the Big Four countries (Kenya, Nigeria, South Africa, and Egypt) continued to attract the majority of funding, accounting for 83% of the total. Kenya, Nigeria, and South Africa each secured approximately $100 million in funding, with Egypt following closely with $61 million. Togo also made it to the top five, thanks to Gozem’s $30 million Series B funding round. Fintech start-ups dominated the funding landscape, raising 46% of the total amount, followed by energy (18%) and logistics & transportation (10%).
Female CEOs, unfortunately, only managed to secure just over 2% of the total funding in Q1 2025, with the largest round being a $6.2 million grant awarded to South African biotech company African Biologics. When excluding grants, the proportion of funding raised by female CEOs drops to 0.7%. The majority of the funding (79%) went to either solo male founders (11%) or male-only founding teams (67%), highlighting the gender disparity in the start-up ecosystem. Diverse founding teams received 20% of the total funding, showing some progress compared to previous quarters. However, only 1% of the funding was allocated to solo female founders or female-only founding teams.
In conclusion, while Q1 2025 may not have been the most robust quarter for start-up funding in Africa, there are still positive indicators to take note of. With continued support and investment in diverse founders and sectors, the African start-up ecosystem has the potential to grow and thrive in the coming years.
(Source: The Big Deal)
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