Startup Funding in Africa Rises 50% in Second Quarter

Key Takeaways

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.