African startups showed renewed strength in 2025, raising billions of dollars in funding, a clear rebound after two challenging years for venture capital on the continent.
A report by Africa: The Big Deal revealed that African startups staged a notable comeback last year, raising a total of $3.2 billion in funding (excluding exits), a 40% year-on-year increase from 2024.
While the figure is impressive on its own, it is even more significant given that it follows two consecutive years of decline, a 35% drop in 2023 and a further 25% contraction in 2024. In 2023, African startups raised around $2.9 billion, and in 2024, they raised approximately $2.2 billion in funding (equity, debt, and grants, excluding exits), a decline from the prior year.
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By the end of 2025, fundraising levels had not only surpassed those of 2024 but also exceeded 2023 totals, signaling a renewed wave of investor confidence across the continent.
Nearly 500 startups raised at least $100,000 in 2025, a figure largely consistent with both 2024 and 2023. However, the composition of funding shifted meaningfully toward larger deal sizes. A total of 215 ventures secured $1 million or more, representing an 11% increase over 2024 and bringing activity back in line with 2023 levels.
The resurgence was even more pronounced at the top end of the market. In 2025, 69 startups raised over $10 million, a sharp rise from just 40 in 2024 and a 73% year-on-year increase. This marked the second-highest number of $10 million-plus deals since tracking began in 2019, second only to the 97 recorded in 2022. Additionally, eight startups announced funding rounds exceeding $100 million, compared to five in 2024 and four in 2023.
Sector-wise, the largest funding rounds were concentrated in energy and fintech. Energy companies such as d.light, Sun King, M-Kopa, and Spiro attracted significant capital, alongside fintech leaders including Wave, MNT-Halan, and Moniepoint.
Investor participation remained robust. In 2025, at least 554 investors were involved in deals of $100,000 or more across Africa. While this figure is likely underestimated due to the limited visibility of angel investors it provides a strong indication of active capital deployment.
The total is broadly in line with 2024 levels, though below the 650-plus investors recorded in 2023. Notably, 31% of investors participated in more than one deal, while 7% were involved in five or more deals, slightly higher than in previous years. Among the most active players, Digital Africaemerged as the leading non-grant investor, with at least 23 investments announced during the year.
Looking at the broader picture, seven years of data underscore the growing depth of Africa’s startup ecosystem. Since 2019, startups on the continent have raised nearly $20 billion in funding (excluding exits).
Over this period, 2,200+ ventures have secured at least $100,000, including more than 1,000 startups raising over $1 million, nearly 300 surpassing $10 million, and 33 exceeding the $100 million mark.
MNT-Halan stands out as the top fundraiser, having raised over $1 billion to date. In total, more than 2,500 investors have participated in at least one African startup deal during this period. Together, these figures highlight a maturing ecosystem that, despite recent headwinds, demonstrated resilience and renewed momentum in 2025.
Outlook for 2026 and Beyond
Looking ahead, the African startup ecosystem appears poised for further growth in 2026. Analysts expect continued investor interest, particularly in fintech, clean energy, healthtech, and mobility solutions, sectors that have consistently attracted mega-rounds.
With digital adoption increasing across the continent, startups that demonstrate scalable models and regional expansion potential are likely to secure larger funding rounds.