The African startup ecosystem has started 2025 on a high-growth trajectory, attracting $1.4 billion in venture capital in the first half of the year. According to insights from Africa: The Big Deal, this represents a massive 78% increase compared to the $800 million raised in the first quarter of 2024.
Despite a relatively slow March, consistent funding across other months, especially the $365 million raised in June, positions 2025 as a promising year for tech startups and innovation across the continent.
African Startup Funding in H1 2025: Key Highlights
- Total Raised: $1.4 billion
- YoY Growth: +78% (vs. $800M in H1 2024)
- Month-on-Month High: $365 million in June 2025
- Funding Type Breakdown:
- Equity: $950 million (68%)
- Debt: $400 million (28.5%)
- Grants: $50 million (3.5%)
- Monthly Average: $237 million (vs. $187M/month in 2024)
Comparing H1 2025 to Previous Periods
While H1 2025 matches the H2 2024 figure ($1.4B), it represents a strong bounce-back from the sluggish H1 2024. Still, it ranks as:
- Second-lowest H1 total since 2022
- Third slowest half overall among the past seven periods
Despite this, the numbers are cause for optimism. With more funding now coming from equity rather than debt, investor confidence in African startups appears to be stabilising.
June 2025: The Strongest Month for African Startups in Nearly a Year
African startups raised $365 million in June 2025, making it:
- The highest monthly total in 2025
- The best-performing month in nearly a year
- A clear standout, surpassing April 2025’s $343 million
June’s performance was largely driven by Senegalese fintech giant Wave, which secured $137 million in debt financing led by Rand Merchant Bank (RMB) and backed by British International Investment (BII), Finnfund, and Norfund.
June Debt Total: $227 million — the highest in over 2 years.
Top Startup Deals in H1 2025
Here’s a snapshot of the biggest African startup funding deals in H1 2025:
1. Wave (Senegal)
- Amount: $137M (Debt)
- Sector: Fintech
- Use of Funds: Expand affordable digital financial services across West Africa
2. hearX (South Africa)
- Amount: $100M
- Sector: Healthtech
- Highlight: Merged with US-based Eargo to expand affordable hearing care globally
3. Nawy (Egypt)
- Amount: $75M
- Sector: Proptech
- Highlight: Africa’s largest-ever proptech round
4. LemFi (Nigeria)
- Amount: $53M (Series B)
- Sector: Fintech
- Focus: Expansion into Europe and Asia for cross-border remittances
5. PowerGen (Kenya)
- Amount: $50M
- Sector: Renewable Energy
- Purpose: Development of a 120MW clean energy portfolio across Nigeria, Sierra Leone, and the DRC
Funding Trends by Month in H1 2025
| Month | Amount Raised |
|---|---|
| January | $250M+ (incl. LemFi, PowerGen) |
| February | $119M |
| March | $50M (lowest month) |
| April | $343M (hearX closes $100M) |
| May | $250M+ (Nawy raises $75M) |
| June | $365M (Wave leads with $137M) |
What’s Fueling the African VC Surge?
Several factors are contributing to the impressive VC run in 2025:
- Increased interest from global development finance institutions (DFIs)
- Improved startup maturity in fintech, healthtech, and clean energy
- More equity-led rounds, signalling stronger investor faith in African business models
- Strategic mergers and cross-border expansions
Africa’s VC Ecosystem on a Growth Path
While challenges like macroeconomic headwinds and global inflation persist, the African startup scene is showing resilience and momentum. The solid $1.4B raised in H1 2025, led by strategic deals in fintech, healthtech, and energy, suggests that Africa’s tech ecosystem is maturing and attracting serious capital.
With more mega-rounds expected in H2 and global investors eyeing Africa for high-impact innovation, 2025 could become a record-breaking year for African venture capital funding.
