African Start-Ups Raise $2.2bn in 2024
Start-ups across Africa raised a total of $2.2 billion in 2024 through equity, debt, and grants, according to Africa, The Big Deal. Although this figure represents a 25% decline compared to the $2.9 billion raised in 2023, it is still a significant achievement in absolute terms.
In total, 188 ventures secured at least $1 million in funding, a figure only 10% lower than the previous year, reflecting continued investor interest in the continent’s start-up ecosystem. Additionally, the exit market remained stable, with 22 public exits recorded in 2024, compared to 20 in 2023.
The year saw a sluggish start, with less than $800 million raised in the first half (H1)—the slowest since 2020. However, the second half (H2) of the year experienced a strong rebound, with $1.4 billion raised, representing a 25% year-on-year increase and an 80% surge compared to H1. This marked the second-best semester since the onset of the “funding winter” in mid-2022.
Key drivers of this resurgence included major deals from Moniepoint and Tyme Group in the fourth quarter (Q4), which introduced two new unicorns to Africa—marking the continent’s first new unicorns since early 2023.
The decline in total funding was largely due to a decrease in debt financing, which accounted for 30% of the total funding in 2024, down from 38% in 2023—a 40% year-on-year drop. On the other hand, equity funding remained more resilient, with $1.5 billion raised, an 11% decrease from $1.7 billion in 2023.
The stabilisation in equity funding, following a sharp 57% drop in 2023, offers optimism for the future growth and resilience of Africa’s start-up ecosystem. Despite the challenges, the strong H2 performance and the stabilisation of equity funding signal a positive outlook for African start-ups in the coming years.
