Four countries absorbed 84% of all funding, with South Africa and Kenya alone accounting for more than half. Egypt followed. Nigeria slipped to 8%, its lowest share since 2019, after years as the top destination for large funding rounds.

However, Nigeria still closed more deals than any other country.

That contrast runs through Briter’s findings as deal volume stayed high, but cheque sizes grew larger and fewer. African startups are still forming and raising capital, but in 2025, funding became harder to access.

Fintech and climate-focused businesses received most of the funding by value, driven by large, capital-heavy deals. Agriculture, health, education and AI startups accounted for most transactions, keeping innovation spread wide even as funding clustered at the top.

How companies raised money also changed. Debt financing crossed $1 billion for the first time, overtaking equity as scaled startups leaned on loans, structured facilities and other non-dilutive instruments to grow. 

Revenue strength, assets and predictability are now more important than rapid expansion.

Exit activity hit a record. Sixty-three acquisitions were announced in 2025, the highest ever recorded. More than half involved startups being bought by corporates, not other startups or private equity firms. Few disclosed prices, but the volume alone shows a market where buying has become easier than building.

Foreign investors still dominate African venture funding, led by the United States and Europe. Briter, however, notes a gradual widening of the pool, with more inflows from Asia and the Gulf, alongside a stronger base of Africa-focused investors providing steadier capital.

The bigger picture is restraint, not retreat. Dario Giuliani, founder and managing director at Briter, said Africa’s investment landscape continues to move through cycles of expansion and preservation, with the current phase firmly in the latter. 

“Capital is more selective, risk appetite more measured, and growth expectations more realistic,” he noted. “Yet beneath this restraint, company formation remains active across the continent, even as a handful of ecosystems continue to dominate and true geographic diversification remains limited.”

In short, funding has returned but access has not. Africa’s tech sector is still moving forward, just with fewer passengers in first class.

Revealed by Africa: The Big Deal, the resurgence has been driven by a steady stream of sizeable deals in equity and debt, with June standing out as a particularly aggressive month. 

Alone, the month saw $365 million in funding, the highest monthly total in nearly a year. This pushed the monthly average for H1 to $237 million, a rise from $133 million in H1 2024 and even above the 2024 full-year average of $187 million.

But this rebound didn’t happen overnight. Of the six months in H1 2025, four crossed $250 million. Even March, which saw a steep dip, has faded from memory in the face of strong activity in both equity and debt funding.

Equity deals made up the lion’s share, reaching $950 million, up 79% year-on-year. However, it came in just below the $1.02 billion raised in the second half of 2024, showing signs of stabilisation. 

The debt market, on the other hand, had a slower start. By May, debt funding stood at $177 million, down from $255 million during the same period last year. 

Then came June, Wave’s $137 million debt round changed the game. With that and a few other sizeable deals, H1 closed with $400 million in total debt funding, matching H2 2024 and improving 55% from H1 2024.

East and West Africa painted a contrasting picture. Kenya and Senegal emerged as the strongest performers, accounting for several of the top ten deals in June. 

Senegal’s Wave led with the $137 million debt round to strengthen its mobile money infrastructure. Kenya followed closely with M-KOPA securing a $51 million loan to scale its digital financial services and PowerGen closing $50 million for clean energy expansion. 

In contrast, Nigeria, long regarded as the continent’s funding magnet, slipped noticeably. No Nigerian startup featured among the top ten fundraisers in May.

There’s also been a transition in the sectors attracting capital. Fintech still commands the largest slice of the pie, but cleantech and healthtech are no longer niche. 

Companies like Burn Manufacturing in Kenya and Wetility in South Africa raised sizeable rounds for clean energy projects. MyDawa, a Kenyan healthtech platform, secured $9.6 million to grow its digital pharmaceutical services.

Despite the strong H1 showing, total funding in H1 2025 is almost identical to H2 2024, down just 1.5%. That shows a market that may have found its ceiling, at least for now.

Still, the recovery for African startups is real. Compared to the funding drought of early 2024, what we’re seeing now is a reversal. The challenge going forward is whether this growth is sustainable, or simply the system catching its breath before the next storm.

A full breakdown is expected at the Africa: The Big Deal LinkedIn Live event on July 22.