The African startup ecosystem recorded a strong recovery in fundraising activity in 2025, reversing two consecutive years of decline.
This was disclosed by Africa: The Big Deal, a platform that tracks startup ecosystem activities on the continent, as 2025 comes to an end.
At the halfway point of the year, start-ups in Africa raised more than $1.4bn through $100k+ deals (excluding exits), with $365m raised in June alone. It was a significant improvement (+78 per cent) compared to H1 2024, when $800m had been raised.
As of 9 December, the startup ecosystem, Africa: The Big Deal, said, “We’ve been monitoring the numbers closely, as always, and let’s be honest: the fact that the ecosystem has performed better in 2025 than in 2024 on startup fundraising would already be a good story in itself. After two years of YoY decline (-35 per cent YoY in 2023 and another -25 per cent YoY in 2024), seeing positive double-digit growth (+33 per cent YoY so far) is a real breath of fresh air.”
The platform said fundraising in 2025 has not only exceeded last year’s performance but has also surpassed levels recorded two years ago, even before the year comes to an end.
“But the fact that start-ups on the continent have now raised more in 2025 than not only in 2024 but also in 2023 feels extra special. It was ‘nearly $3bn’ in 2023; it will be ‘over $3bn’ in 2025, and the year isn’t even over yet,” said the platform.
Africa: The Big Deal also highlighted improvements in equity funding, public market activity, and exits, pointing to renewed momentum across the ecosystem.
“Another important point: it’s not just total funding raised (exc. exits) that has surpassed 2023 levels; equity funding specifically has too. Add to that the first two IPOs in November after more than six years, plus some serious exit activity (including Walletdoc’s $23m+ acquisition), and we hope most of you will agree with this early end-of-year statement: 2025 has been a pretty good year,” added Africa: The Big Deal.
Beyond the headline rebound, data from Africa: The Big Deal show that funding activity across the continent in 2025 has been driven largely by a recovery in deal flow rather than a few isolated mega-rounds. The platform reported that African startups raised more than $1bn within the first five months of the year, compared with about $750m recorded during the same period in 2024, indicating stronger early-year momentum.
Sectoral data point to fintech maintaining its dominance in the funding landscape. According to Africa: The Big Deal, fintech startups accounted for about 45 per cent of all disclosed funding raised on the continent in the first half of the year, attracting roughly $640m. This continues a long-standing trend in which fintech remains the most attractive sector for investors despite broader market volatility.
Country-level analysis also shows a more even spread of capital compared to previous years. Africa: The Big Deal reported that Nigerian startups ranked among the top recipients of funding on the continent in the first five months of 2025, placing third overall. Other countries attracting top funding are Egypt, Kenya and South Africa.
Taken together, these figures suggest that while fundraising conditions remain selective, investor confidence is gradually returning.
