Startup Funding in Africa Rises 50% in Second Quarter
TLDR
- African tech startups raised $426.9 million in Q2 2025, a 50% increase from Q1’s $283.9 million, signaling potential recovery after a prolonged funding slowdown
- The number of startups funded dropped slightly to 49 from 55, according to the latest African Tech Startups Funding Report
- Major deals in 2024 by Moniepoint and Yellow Card had raised optimism, but a meaningful turnaround only became visible in Q2 2025
African tech startups raised $426.9 million in Q2 2025, a 50% increase from Q1’s $283.9 million, signaling potential recovery after a prolonged funding slowdown. The number of startups funded dropped slightly to 49 from 55, according to the latest African Tech Startups Funding Report by Disrupt Africa.
Despite a weak Q1, the first half of 2025 closed with $710.8 million invested across 104 startups. This marks a 34% year-on-year increase from the $530 million raised in H1 2024, when African startup funding dropped more than 50% to $1.1 billion for the full year. The number of funded startups also halved in 2024, reflecting ongoing impacts from global capital constraints.
Major deals in 2024 by Moniepoint and Yellow Card had raised optimism, but a meaningful turnaround only became visible in Q2 2025. Disrupt Africa’s report is released in partnership with Art of Scale.
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Points clés à retenir
The funding rebound in Q2 suggests global investor interest in African startups may be stabilizing. While capital flows remain below 2021 peaks, Africa’s fundamentals—growing consumer markets, fintech expansion, and underpenetrated sectors like logistics and healthtech—continue to draw attention. According to Partech’s 2024 Africa Tech Venture Capital Report, funding in African startups had fallen by 46% year-over-year, the first major contraction in a decade. However, Q2’s growth could reflect investor adaptation to new risk environments, prioritizing fewer but larger and later-stage deals. While the number of funded startups dropped, ticket sizes increased. This may signal a shift in focus from volume to viability. With local funds gaining ground and strategic investors maintaining interest, the rest of 2025 could see cautious optimism return to African tech.
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