African Start-Ups Raise $2.2bn In 2024

Start-ups in Africa raised $2.2 billion in equity, debt, and grants in 2024 (excluding exits), a significant figure in absolute terms, Africa, The Big Deal has revealed.

This reflects a 25 percent decline compared to the $2.9 billion raised in 2023.

Despite the dip, 188 ventures secured $1 million or more in funding, just 10 percent less than the number achieved the previous year.

On the exit front, activity remained steady, with 22 public exits in 2024, up from 20 in 2023.

The year’s performance was shaped by a sluggish start, with under $800 million raised in the first half—the slowest H1 since 2020.

However, the second half of the year saw a strong rebound, with $1.4 billion raised, marking a 25 percent year-on-year increase and an 80% surge compared to H1.

This resurgence was the second-best semester since the onset of the “funding winter” in mid-2022.

Key drivers included the mega deals of Moniepoint and Tyme Group in Q4, which introduced two new unicorns to the continent — the first since early 2023.

The decline in overall funding was largely driven by a contraction in debt financing. Debt made up 30 percent of the total funding announced in 2024, compared to 38 percent in 2023, marking a 40 percent year-on-year decrease.

In contrast, equity funding displayed resilience, with $1.5 billion raised, an 11 percent decline from 2023’s $1.7 billion.

This stabilisation in equity levels, after a sharp 57 percent drop in 2023, offers hope for the future of funding on the continent.

As the African start-up ecosystem navigates ongoing challenges, the rebound in H2 and the stabilisation of equity funding underscore the sector’s resilience and potential for growth.