Despite a 78 per cent surge in overall funding, female-led African startups received just 1.5 per cent of total capital in H1 2025, with ventures featuring at least one female co-founder claiming only 9 per cent.
“Investments in female (co-)founded startups keep declining,” the Africa: The Big Deal report warns, adding that funding for female CEOs is “at its lowest in years.”
African startups raised $1.4 billion in the first half of 2025—a 78 per cent increase over H1 2024. “Startups raised significantly more in H1’25 than in H1’24 (+78%),” states Africa: The Big Deal, highlighting a powerful post-downturn recovery.
Fintech firms dominated, securing $640 million—45 per cent of funding—across digital banking, payments, and lending. “Fintech continues to attract almost half of all startup funding,” analysts note, cementing its role as Africa’s investment powerhouse.
Climate Tech Attracts $300 M
With $300 million raised, climate tech accounted for 21 per cent of H1 funding, driven by demand for clean energy, agritech, and emissions-reduction solutions. “With $300 M raised, climate tech attracts 21 per cent of H1 funding,” the report observes.
Big Four Lead but 33 Per cent of Deals Beyond Core Markets
South Africa (25 per cent), Egypt (24 per cent), Kenya (16 per cent), and Nigeria (13 per cent) claimed 78 per cent of H1 funding. Yet 33 per cent of all $100K-plus deals occurred outside these hubs, underscoring emerging ecosystems across West, East, and Francophone Africa.
In H1 2025, 238 startups closed rounds of at least $100 K, 108 raised $1 million or more, and 40 secured $10 million-plus rounds. Over 330 unique investors participated, reflecting a maturing and increasingly diversified funding landscape.
Equity Dominates While Debt Instruments Rise
Equity deals made up 67 per cent of H1 funding, while debt instruments climbed to 28 per cent, signaling growing founder and investor comfort with more complex financing structures.
African startups attracted just 0.4 per cent of global equity funding but led all regions in recovering to pre-downturn levels. “After a period of stabilisation, a new period of growth? Africa continues to mirror global trends, with a 6-month delay,” the report concludes.
July 2025 Sets New Monthly Record
“July 2025 was a very good month,” says Max Cuvelier Giacomelli, co-founder of Africa: The Big Deal and Head of Mobile for Development at GSMA. That month, 61 startups—15 countries, including Libya for its first $100 K-plus round—raised at least $100 K, surpassing the H1 average of 40.
Kenyan energy firms led July’s $550 million haul: d.light secured $300 million in receivables financing, and Sun King a $156 million debt facility. Debt deals represented 89 per cent ($493 million) of July’s funding and 45 per cent year-to-date. Equity rounds totalled $58 million, driven by Rwazi’s $12 million Series A, which pushed cumulative equity funding past the $1 billion milestone faster than October 2024 and nearly matched June 2023.
The ecosystem narrowly missed the $2 billion total funding milestone (excluding exits) by $25 million—a gap likely to close within weeks.
