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.

The post African Startup Funding Crashes to Four-Year Low in March | Worst Month Since 2020 appeared first on Tech | Business | Economy.

As revealed by Africa: The Big Deal, that’s nearly 3.5 times more than the $85 million raised in January last year. This funding majorly came from the renewable energy, fintech, insurtech, and education sectors.

Investors are pouring money into Africa’s innovation sector, not allowing the challenges sway them. More than 90% of January’s funding—$262 million—came from equity deals, making it the second-largest January for startup equity financing since 2019, only behind the funding frenzy of 2022.

Big Money, Big Players

While there were 40 funding deals above $100,000 last month, the real game-changers were the 26 deals that were over $1 million—more than last year’s 21 high-value transactions. 

However, nearly 60% of the total funding was swallowed up by just four major deals, all originating from Africa’s biggest startup hubs: Nigeria, Kenya, Egypt, and South Africa.

The biggest winners of the month were:

• PowerGen (Energy): Raised over $50 million to expand its distributed renewable energy solutions across Africa.
• LemFi (Fintech): Secured $53 million to push into Asia and Europe, proving African fintech is now a global export.
• Naked (Insurtech): Bagged $38 million in a Series B round to automate and diversify its insurance offerings.
• Enko Education: Pulled in $24 million to continue expanding its African school network.

Where Does This Leave the Rest of Us?

The tech sector is clearly off to a strong start in 2025, but this cash inflow is a big contrast to the financial issues of everyday Africans. While startups thrive, inflation keeps rising, wages remain stagnant, and the naira keeps playing hide and seek with stability.

Last year, African startups raised a total of $2.2 billion, a drop from the $2.9 billion in 2023, but the numbers show that there could be a rebound. 

If this pace continues, investors will keep betting big on Africa’s tech—even if the rest of the continent is left wondering when that wealth will finally trickle down.

The post African Startups Raise $289M in January appeared first on Tech | Business | Economy.

The Big Deal’s latest report revealed the advantages and unique dynamics that pushed Kenya to the top position, while also exploring the performance of the remaining ‘Big Four’ nations – Egypt, South Africa, and Nigeria.

The total funding raised by African startups in 2023 amounted to $3.2 billion, with Kenya overtaking Nigeria with $800 million raised.

Kenya’s funding made up 28% of the total funding in Africa. Despite facing a 25% year-on-year decline, Kenya held on to resilience, solidifying its role as a strategic hub for startup investments. The report noted Kenya’s share of Eastern Africa’s funding soared from 86% in 2022 to 91% in 2023.

Mkopa, Twiga Foods and Copia Global are among the top startups that contributed to Kenya’s total of $800 million in startup funding in 2023

Nigeria, traditionally the top in African startup funding, faced a reversal of fortunes in 2023. Despite having the highest number of startups raising $100,000 or more (146, representing 29% of the continent), the total funding for Nigerian startups reduced by 67% to reach $410 million. This downturn resulted in Nigeria’s share of Western African funding dropping to 68%, marking the lowest regional share among the ‘Big Four’ since data collection began in 2019.

While Egypt witnessed the lowest number of startups raising $100,000 or more among the ‘Big Four’ (48 ventures), a moderate year-on-year decline (-20%) allowed the country to claim the second spot. Egypt’s share of North African funding grew from 72% in 2022 to 95% in 2023, demonstrating resilience in the midst of regional challenges. The report attributed this growth to the magnitude of MNT-Halan’s fundraising and the challenges faced by Algeria and Tunisia.

South Africa maintained its stronghold in the regional funding arena, with a 97% share and a total funding accumulation of $600 million. The country, unique among the ‘Big Four,’ saw an 8% year-on-year increase in total funding, pointing to a strong and growing startup ecosystem. The 70 South African startups raising $100,000 or more contributed 21% to the continent’s total funding.

Kenya’s ascendancy over Nigeria and the unique trajectories of Egypt and South Africa spotlight the fast-growing dynamics within the African startup ecosystem. The report emphasises the significance of regional dominance, innovation ecosystems, and adaptability in shaping the funding space. Kenya’s success is a pointer to resilience and opportunities for other African nations to emerge as key players, promoting diversity and competition.

The post Kenya Leads the Big Four – Attracts the Most Startup Funding Raise in Africa 2023 – Report appeared first on Tech | Business | Economy.