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African startups raise $781M in H1 2024, funding decline 57%

African: The Big Deal

Startups across Africa raised a total of $781 million in the first half of 2024 translating to a 57% decline in funding year on year. 

This is according to the latest report by ‘Africa: The Big Deal’, which monitors deals announced by startups on the continent.  

The report indicated that two-thirds of the funding received by the continent’s startups was in the form of equity, and a third was debt. It further revealed that 4 out of 5 dollars invested in startups in Africa went to ventures based in the Big Four comprising Nigeria, Kenya, South Africa, and Egypt. 

“The sector to attract the most funding was Transport & Logistics (28%), with two of the three largest deals announced in H1 (Moove and Spiro). While Fintech came only second in amount raised, it stayed in the lead in terms of number of start-ups raising $1m or more during the period (30),” the report stated.  

According to the report, only a fraction of the funding continued to go to female-founded and female-led start-ups with 85% of the funding going to ventures without a single female founder and 92% to companies with a male CEO. 

An earlier report from Africa: The Big Deal, indicated that the continent’s startups raised a cumulative $466 million in Q1 2024. Funding in the quarter was led by Nigerian mobility startup, Moove, which accounted for 24% of the total funds raised by African startups in the first three months of this year.  

Within the period, Moove raised a total of $110 million including a $100 million Series B round led by Uber. 

The report indicated that the $466 million raised by African startups in Q1 was realized through 121 startups that secured $100,000 plus deals. This, however, represented a 27% decrease quarter on quarter, and only half of the amount that was raised a year earlier in Q1 2023. 

 

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