Begin-ups in Africa raised $2.2 billion in fairness, debt, and grants in 2024 (excluding exits), a big determine in absolute phrases, Africa, The Massive Deal has revealed.
This displays a 25 p.c decline in comparison with the $2.9 billion raised in 2023.
Regardless of the dip, 188 ventures secured $1 million or extra in funding, simply 10 p.c lower than the quantity achieved the earlier 12 months.
On the exit entrance, exercise remained regular, with 22 public exits in 2024, up from 20 in 2023.
The 12 months’s efficiency was formed by a sluggish begin, with below $800 million raised within the first half—the slowest H1 since 2020.
Nonetheless, the second half of the 12 months noticed a powerful rebound, with $1.4 billion raised, marking a 25 p.c year-on-year improve and an 80% surge in comparison with H1.
This resurgence was the second-best semester because the onset of the “funding winter” in mid-2022.
Key drivers included the mega offers of Moniepoint and Tyme Group in This autumn, which launched two new unicorns to the continent — the primary since early 2023.
The decline in general funding was largely pushed by a contraction in debt financing. Debt made up 30 p.c of the overall funding introduced in 2024, in comparison with 38 p.c in 2023, marking a 40 p.c year-on-year lower.
In distinction, fairness funding displayed resilience, with $1.5 billion raised, an 11 p.c decline from 2023’s $1.7 billion.
This stabilisation in fairness ranges, after a pointy 57 p.c drop in 2023, gives hope for the way forward for funding on the continent.
Because the African start-up ecosystem navigates ongoing challenges, the rebound in H2 and the stabilisation of fairness funding underscore the sector’s resilience and potential for development.
