Between January and August, over $2 billion flowed into more than 500 deals across the continent, with the median deal size climbing to $1 million. 

The short read for African startups in 2025: capital is concentrating. A small number of large rounds, and a wave of debt instruments, are lifting totals even as deal counts remain well below the 2021 peak. If you follow winners and losers, this report gives you both the scoreboard and the pattern behind it. 

What moved the needle

A handful of headline transactions drove much of the volume. Healthtech saw a major consolidation when US-based Eargo and South Africa’s hearX merged to form LXE Hearing, then secured $100 million from Patient Square Capital. 

Fintech company Zepz raised $165 million in debt from HSBC, bringing its total capital to more than $1 billion, and South Africa’s Nedbank completed a $93 million acquisition of payments firm iKhokha. These single events changed the shape of the year. 

Cleantech also punched above its weight: persistent, large debt deals, including packages from Sun King and d.light, pushed Cleantech funding toward $950+ million for the year and raised its median check to about $5 million, higher than many other sectors. 

Fewer deals, bigger checks

The report shows deal counts are down, but checks are larger. Since the 2022 bubble, investors have leaned toward later-stage, capital-heavy businesses. Sub-$250k rounds and the $250k–$1m tier have collapsed: the latter fell from 90 deals in 2022 to just 21 in 2025. The result is a 2025 picture that looks healthier by value, but narrower by opportunity. 

Seven of the top ten companies used debt to accelerate growth, a striking indicator that lenders and development finance players are comfortable backing asset-heavy, revenue-generating models across the continent. 

Sectors and products

Fintech remains the largest sector by value, $1+ billion, and leads in deal count (115+ deals). But Cleantech’s growth is the story of the year: nearly $950+ million, largely driven by debt. Health, mobility and property tech lag in total capital but remain steady in activity. 

Top product lines tell the same tale:

• Solar energy: $830+ million (the single largest product grouping).
• Payments & transfers: $455+ million.
• Diagnostics, gas & cooking equipment, and POS solutions all appear in the top five. 

That distribution explains the debt tilt: asset-heavy, capital-intensive products (solar kits, gas equipment, etc.) are natural fits for structured lending and project finance.

Regions: East and Southern Africa surge

Geography shifted in 2025. Briter records East Africa ($865m+) and Southern Africa ($845m+) as the top-funded regions by value, while West Africa ($420m+) and North Africa ($450m+) sit behind. 

The long-time lead from West Africa, largely Nigeria-driven, has softened as billion-dollar rounds and large debt deals flow to companies headquartered in East and Southern African hubs. 

The gender gap remains glaring

I find this worrying: the recovery has not been inclusive. The report shows male-led teams capturing the vast majority of capital. Measured over the past five years, male-led teams took close to 90% of funding by value; in 2025 so far, roughly three quarters of funding has gone to primarily male-led companies. Female-led and mixed teams still receive only a sliver. 

M&A and churn

Activity on the exit front has been busy. Briter records 35+ acquisitions in 2025 to date, including high-profile buys like Meta’s purchase of Egypt’s PlayAI and Lesaka’s $60m+ acquisition of South Africa’s Bank Zero. The report also notes six company shutdowns this year, reminding us that while capital inflows are rising, risk and churn remain. 

What this means?

• Recovery yes, broad-based no. 2025 is a rebound in dollar terms, but not a broad reopening of early-stage funding. 
• Debt is mainstream. With debt crossing $1 billion for the first time, expect more structured financing for asset-centric companies. 
• Concentration risk. A small number of very large deals can create the illusion of a healthy market while nascent startups struggle. 
• Inclusion remains unfinished business. The gender imbalance and the collapse of the $250k–$1m tranche mean founders outside established networks face a tougher climb. 

Briter’s Venture Pulse gives us a simple, necessary truth among African startups in 2025: capital is back in Africa, but it’s pickier than before. If you’re building a capital-intensive product with clear revenue, 2025 is a good moment. If you’re an early-stage founder hunting sub-$1m cheques, the space is tighter and you’ll need a different playbook.

Over the past decade, angel networks across Africa have invested $35 million into more than 1,200 early-stage startups, a solid foundation, but tiny compared to the continent’s potential. 

In the East African economic block alone, 18 active networks, from Nairobi Business Angel Network to Ajax Capital Group, form one of the region’s most active clusters. However, real capital flows usually lag behind policy results.

At ABAN Congress 2025 in Lagos, themed “Accelerating Local Capital Participation,” this gap will be addressed. African startups raised $289 million in 2025 alone, with 90% in equity deals, revealing a shift toward more structured, scalable investment. 

Angel syndicates now account for 46% of investments, enabling pooled capital, shared risk, and larger deals. Catalytic Africa, ABAN’s co-investment platform, has mobilised 10× more capital since 2022, backing startups across 15+ countries. Despite these advances, we wonder why policy is not translating into capital in the hands of founders?

To understand why these policies haven’t fully translated into funding, Techeconomy spoke with Martin Warioba, managing partner at Warioba Ventures and a leading voice in East Africa’s investment ecosystem, to dissect the gap between policy intentions and actual capital deployment, and explore ways to turn investor-friendly frameworks into real-world funding.

Turning Policy into Capital

On the disconnect between policy and execution, Warioba says: “Policies like the Startup Act or tax incentives mainly exist but are undermined by unclear implementation guidelines, slow regulatory approvals, and minimal awareness among local stakeholders.”

“The real gap is execution muscle and ecosystem feedback loops. Without collaboration between policymakers and actual capital deployers, policies risk becoming symbolic rather than catalytic.”

A policy in East Africa that has already had a measurable impact on early-stage investment is Rwanda’s Capital Markets Authority (CMA) regulatory framework for Collective Investment Schemes (CIS).

“This has provided a clear path for registering venture capital funds and has attracted cross-border investment. Warioba Ventures has leveraged this policy to structure its Pan-African VC fund with domiciliation in Kigali.

“Catalytic Africa’s matching fund could be another example – though not a policy per se – has operationalised policy intentions by directly channelling local and foreign capital into early-stage startups.”

While Rwanda shows what’s possible with the right framework, scaling impact across East Africa also requires active participation from angel networks.

The Role of Angel Networks

Angel investor networks, Warioba explains, are essential to bridging the gap between policy and capital: “Angel networks are the frontline of early-stage capital. They see firsthand what policies work, where frictions lie, and what founders need to thrive. Angel networks can translate these insights into actionable policy proposals – on tax breaks, capital gains treatment, investor protection, and cross-border capital mobility.

“More importantly, angel networks can pilot co-investment models, like Catalytic Africa, that demonstrate what’s possible when policy meets private initiative.”

Warioba stresses that inclusive policy must extend beyond urban hubs: “Governments must decentralise innovation infrastructure – innovation hubs, access capital, and capacity building programs – beyond major cities. Policies should include incentives for investors who support startups in rural or underserved regions.

“Digital infrastructure and interoperable payment systems remain foundational to building inclusive ecosystems across East Africa’s secondary cities and border regions.”

On government agencies to partner with in order to unlock capital flows immediately, he says: “I will work with the Ministry of Finance to establish the Startup Investment Guarantee Facility backed by public and philanthropic capital.

“This facility would de-risk private and foreign capital entering early-stage startups through first-loss guarantees and co-investment structures into early-stage funds managed by licensed local GPs. This would signal long-term national commitment and crowd in institutional and private participation across the region.”

With ABAN Congress 2025 approaching, Warioba stresses that policies alone do not move capital for any startup; but combined with strategic co-investment models, engaged angel networks, and targeted government initiatives, East Africa has the potential to become a thriving region where startups can scale successfully.