African Startups Secure $3.2bn in Venture Funding in 2025
Venture funding into African startups rebounded strongly in 2025, with companies across the continent raising a combined $3.2 billion, according to new data from Africa: The Big Deal.
The figure represents the highest level of startup funding recorded in Africa in the past three years, signalling renewed investor confidence after two consecutive years of decline.
Strong Year-on-Year Growth
The $3.2 billion raised in 2025 marks a 45.4% increase compared to the $2.2 billion raised in 2024. It also reflects a 6.6% rise over the $3 billion secured in 2023, making 2025 the first year of growth following downturns in both 2023 and 2024.
“Startups in Africa raised $3.2 billion in 2025. This represents very solid growth compared to 2024, particularly welcome after two consecutive years of decline,” the report noted.
Analysts say the performance confirms that fundraising levels have not only surpassed 2024 but also exceeded those of 2023.
How Funding Played Out in 2025
Q1 2025: Strong Start, Sharp Mid-Quarter Dip
Following a late funding rally in 2024, momentum carried into the new year. African startups raised $289 million in January 2025, making it the second-best January since 2019, behind only January 2022.
Funding slowed in February to $119 million, the weakest February since 2019, before dropping sharply in March to just $50 million, one of the slowest months since the height of the COVID-19 pandemic in late 2020.
Overall, the first quarter closed with $458 million raised.
Q2 2025: Funding Momentum Accelerates
The second quarter marked a turning point. Startups raised $343 million in April, the second-best April on record, trailing only April 2022 during Africa’s funding boom.
Momentum continued in May with $254 million, pushing total funding past the $1 billion mark within five months. June capped the quarter with its strongest month as startups raised $365 million.
By the end of Q2:
- Quarter total: $962 million
- First-half total: $1.42 billion
Q3 2025: Record-Breaking July, August Dip
The third quarter opened with a surge as African startups raised $550 million in July, the best-funded month of 2025 and the strongest month in over two years.
This brought year-to-date funding to $1.97 billion, just shy of the $2 billion mark.
Funding slowed sharply in August to $93 million, the second-slowest month of the year, before recovering slightly in September with $140 million raised.
Q3 closed with $783 million, pushing cumulative funding to $2.20 billion, already surpassing total funding for the whole of 2024.
Q4 2025: Strong Finish Seals the Year
The final quarter began on a high note with $442 million raised in October, the second-highest month of the year after July.
November saw a pullback to $162 million, before a strong rebound in December, when startups secured $393 million.
By year-end:
- Q4 total: $997 million
- 2025 total: $3.2 billion
Q4 ultimately emerged as the most-funded quarter of the year.
Deal Activity and Startup Breakdown
Behind the funding surge was broad-based startup participation across the continent:
- Nearly 500 startups raised at least $100,000 in 2025
- 215 startups raised $1 million or more, up 11.4% from 193 in 2024
- 69 startups raised $10 million or more, a 72.5% increase from 40 in 2024 and the second-highest since 2019
- 8 startups announced mega-rounds above $100 million, compared to five in 2024 and four in 2023
A Turning Point for African Venture Funding
Analysts say the 2025 numbers reflect a clear recovery phase for Africa’s startup ecosystem, driven by improved investor sentiment, fewer but larger deals, and renewed interest in scalable business models.
With funding levels now exceeding pre-2024 benchmarks, the data suggests African venture capital may be entering a more stable growth cycle, setting the stage for cautious optimism heading into 2026.
