Start-ups across Africa raised a total of $460 million in the first quarter of 2025 through deals valued at $100,000 or more (excluding exits), slightly trailing the $486 million raised in Q1 2024. This represents a modest 5% year-on-year decline. However, it’s worth noting that Q1 2024 was already a weak quarter, making Q1 2025 the second-lowest for start-up funding since late 2020.
Despite the dip in total funding, the number of start-ups securing $1 million or more stood at 52, in line with the average over the past two years and signaling sustained interest in scalable ventures.
Unsurprisingly, the **Big Four start-up ecosystems—Kenya, Nigeria, South Africa, and Egypt—**dominated the funding landscape, attracting a combined 83% of total investment. Kenya and Nigeria led the pack with each drawing 24% of total funds, followed closely by South Africa at 22% and Egypt at 14%. Togo made a rare appearance in the top five, thanks to Gozem’s $30 million Series B round.
Fintech continued to lead the charge, absorbing 46% of the total capital raised. Notable deals included $53 million for LemFi and $38 million for insurance tech company Naked. The energy sector followed at 18%, while logistics and transportation accounted for 10%.
However, the quarter also laid bare the persistent gender disparity in funding. Start-ups led by female CEOs secured just over 2% of total investment—around $10 million—with the largest being a $6.2 million grant awarded to South Africa-based African Biologics. When grants are excluded, that number drops dramatically to just 0.7%.
Of all the funding raised:
- 11% went to solo male founders
- 67% went to all-male founding teams
- 20% was claimed by gender-diverse teams
- Only 1% went to solo female founders or female-only founding teams
While funding for diverse teams saw a modest improvement compared to previous quarters, the data highlights a continuing imbalance in capital allocation, with women founders still struggling to access meaningful investment at scale.
As Q2 begins, the spotlight remains on whether the industry can build momentum while closing equity gaps and diversifying both sectors and leadership.
