Africa Startup Funding Q1 2025: Resilience Amidst Global Downturn

Africa startup funding Q1 2025 demonstrated notable resilience, securing approximately US$460 million through deals exceeding US$100,000. This figure represents a modest 5% decline compared to Q1 2024, which had already experienced a downturn. Despite global economic challenges, the number of startups announcing funding remained consistent with previous months, indicating sustained investor interest.

Key Funding Highlights

Kenya, Nigeria, and South Africa each attracted around US$100 million in funding, accounting for 24%, 24%, and 22% of the total, respectively. Egypt followed with US$61 million, representing 14% of the total funding. Notably, Togo emerged in the top five, propelled by Gozem's US$30 million Series B round.

Fintech continued to dominate the funding landscape, securing nearly half of the total investments. Significant deals included LemFi's US$53 million and Naked's US$38 million, underscoring the sector's appeal to investors. Energy and logistics sectors also attracted substantial investments, reflecting a diversified interest in the continent's startup ecosystem.

However, the gender disparity in funding remains a pressing concern. Female-led startups raised just over 2% of the total funding, with the largest being a US$6.2 million grant to South African biotech firm African Biologics. Excluding grants, this figure drops to 0.7%, highlighting the ongoing challenges faced by female entrepreneurs in accessing capital.

The Resilience of Africa Startup Funding Q1 2025

Overall, while Africa startup funding Q1 2025 levels were slightly below the previous year, the consistent number of funded startups and the diversity of sectors receiving investments suggest a resilient and evolving African startup ecosystem. Addressing the gender funding gap remains crucial for fostering inclusive growth and maximizing the continent's entrepreneurial potential.