• About
  • Advertise
  • Careers
  • Contact Us
Saturday, June 28, 2025
  • Login
No Result
View All Result
NEWSLETTER
Tech | Business | Economy
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
    • Mobility
    • Environment
    • Travel
    • StartUPs
      • Chidiverse
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • EventDIARY
    • Editorial
    • Appointment
  • TECHECONOMY TV
  • Apply
  • TBS
  • BusinesSENSE For SMEs
  • Chidiverse
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
    • Mobility
    • Environment
    • Travel
    • StartUPs
      • Chidiverse
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • EventDIARY
    • Editorial
    • Appointment
  • TECHECONOMY TV
  • Apply
  • TBS
  • BusinesSENSE For SMEs
  • Chidiverse
No Result
View All Result
Tech | Business | Economy
No Result
View All Result
Home Business StartUPs

African Startup Funding Crashes to Four-Year Low in March | Worst Month Since 2020

…from approximately $300 million raised in January, to $50 million in March—Q2 has a lot of ground to make up

by Joan Aimuengheuwa
April 2, 2025
in StartUPs
1
African Startup Funding March
Source: Unsplash

Source: Unsplash

UBA
Advertisements

Investors were in no hurry to sign cheques in March, and the African startup funding space felt it. After a good start in 2025, with nearly $300 million secured in January, the rate didn’t just slow down—it collapsed. 

By the end of March, only $50 million had been 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.

Fintech, the usual magnet for funding, held its grip on the market, attracting 46% of the total investment. Notable deals included LemFi’s $53 million and Naked Insurance’s $38 million. Energy startups secured 18% of the funding, while logistics and transportation claimed 10%.

Female Founders Get Just 1% of the Money

The gender funding gap refuses to close. Startups with female CEOs raised only $10 million in Q1—just over 2% of the total. Strip out grants, and that figure collapses to an abysmal 0.7%. The single largest funding round for a female-led startup was a $6.2 million grant awarded to South African biotech firm African Biologics.

Meanwhile, the industry is still overwhelmingly male-dominated. Solo male founders took 11% of total funding, and all-male founding teams pocketed 67%. Diverse teams—those with at least one female co-founder—secured 20%. But solo female founders or all-female teams? Just 1% of the pie.

The most striking feature of Q1 2025 wasn’t just the drop in funding—it was the absence of major deals. In March, not a single startup announced a funding round exceeding $10 million. That’s unusual, and it raises serious questions about investor confidence.

So, what happens next? The market isn’t in free fall, but it’s not thriving either. Investors seem hesitant, large-scale bets are disappearing, and if this trend continues, African startups could be in for a rough year.

It’s not all doom and gloom, though. The long-term trend still shows resilience, and startup activity hasn’t dropped dramatically. But without major deals to drive momentum, the ecosystem is running on fumes.

Loading

Advertisements
MTN ADS

0Shares
Tags: "Africa: The Big Deal2025 fundingAfrican Startup FundingAfrican startupsinvestmentstartupsThe Big Four
Joan Aimuengheuwa

Joan Aimuengheuwa

Joan thrives at helping individuals and businesses scale via storytelling...

Next Post
Arik Air in 2024

Arik Air Airlifts 2.2m Passengers, Operates 10,699 Flights in 2024

Comments 1

  1. Pingback: GoGettaz Agripreneur Prize 2025: Young African Innovators to Compete for $160,000 in Funding

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recommended

Dr Vincent Olatunji - Nigeria Data Protection Commission - NDPC speaks on DPCOs

NDPC Says 183 DPCOs Not Enough, Reopens Registration Portal

1 year ago
Fintechngr and NDPC

FintechNGR, NDPC Partner for Insightful Data Privacy Forum

2 years ago

Popular News

    Connect with us

    • About
    • Advertise
    • Careers
    • Contact Us

    © 2025 TECHECONOMY.

    No Result
    View All Result
    • News
    • Tech
      • DisruptiveTECH
      • ConsumerTech
      • How To
      • TechTAINMENT
    • Business
      • Telecoms
      • Mobility
      • Environment
      • Travel
      • StartUPs
        • Chidiverse
      • TE Insights
      • Security
    • Partners
    • Economy
      • Finance
      • Fintech
      • Digital Assets
      • Personal Finance
      • Insurance
    • Features
      • IndustryINFLUENCERS
      • Guest Writer
      • EventDIARY
      • Editorial
      • Appointment
    • TECHECONOMY TV
    • Apply
    • TBS
    • BusinesSENSE For SMEs

    © 2025 TECHECONOMY.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    Translate »
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.