In 2024, African startups raised $2.2 billion in equity, debt and grants (excluding exits), according to data from the Africa: The Big Deal platform.
While this amount represents a significant influx of capital, it marks a 25% decrease from the $2.9 billion raised in 2023.
Despite this decline, the ecosystem has remained resilient. In fact, 188 companies raised $1 million or more in 2024 (excluding exits), only 10% fewer than in 2023.
The platform explains that the disappointing funding results for African startups in 2024 are largely due to a slow start. Indeed, in the first half of the year, start-ups on the continent raised less than $800 million, the biggest drop since the end of 2020.
However, there was a significant rebound towards the end of the year, with $1.4 billion raised in the second half of the year, a 25% increase on the previous year and an 80% increase on the first half.
This second half of the year is now considered the second best since the start of the funding slowdown in mid-2012.
Furthermore, the share of debt in total financing remains high in 2024 (30%) but is lower than in 2023 (38%). Debt is down 40% year-on-year, while total equity raised in 2024 ($1.5bn) is 11% lower than in 2023 ($1.7bn).
