The Big Deal puts African tech startup funding in H1 at $780m

STARTUP VENTURE CAPITALJuly 4, 2024 at 3:54 PM UTC

TLDR

African tech startups raised only $780 million in H1 2024, marking a 31% decline from the previous half and a stark 57% drop from H1 2023.
Total funding for H1 2024 is the lowest recorded since H2 2020, indicating a significant ongoing decrease in investment in Africa's tech sector.
Report by Africa the Big Deal reveals the intensified African startup funding winter, underscoring challenges faced by tech ventures in securing capital.

The African startup funding winter has intensified in 2024, with African tech startups raising only $780 million in the first half of the year. This information was disclosed in a report by funding database, Africa the Big Deal.

Per the report, the total funding for H1 2024 represents a 31% decline from the total funding secured in the second half of 2023. The situation appears even more dire when compared to the first half of 2023, showing a sharp 57% decline.

Indeed, the funding for African tech startups between January and June 2024 is the lowest recorded for a semester since the second half of 2020, highlighting the continuing decline in investment in the continent's tech sector.

Key Takeaways

Two-thirds of the total $780 million funding raised in the first half of 2024, amounting to $513 million or 66%, came in the form of equity. This marks an improvement compared to 2023, where only 60% of funding was equity-based. Meanwhile, 33% of the total funding was in the form of debt, a decline from 38% in 2023, and 1% came from grants. Kenya emerged as the top destination for African tech startup funding, attracting $244 million, which accounts for 32% of the total $780 million. Nigeria followed, securing $172 million, representing 23% of the total funding.

Africa The Big Deal

Tech Startup Funding

Venture Capital

Venture Funding

Startups

Investing in Africa

Kenya

Nigeria

Egypt