African startups have raised $2.65 billion so far in 2025, according to data from Africa the Big Deal. This feat is quite imperative considering that startups around the continent were only able to raise 1.7 billion in the same ten-month period in 2024, representing a 56 per cent growth.

It is also slightly higher than the $2.6 billion raised in the first 10 months of 2023. Indeed, aside from the funding explosions of 2021 and 2022, when $3.3 billion and $4 billion were recorded during the same period, no other year since 2019 has enjoyed a better funding total in its first 10 months than 2025.

There is also an impressive story to be told in the number of startups that have raised $1 million and above over the last 10 months, as 179 startups have their names etched in this class. This is significantly higher than the 159 startups that raised $1 million or more in the same period of 2024, representing a 12.6 per cent increase.

The total number of startups this year is almost the same as the same period in 2023, with 178 startups contributing $1 million or more to the ten-month total. It, however, falls short of the 229 and 298 recorded in 2021 and 2022, respectively.

With these numbers, one could safely conclude that funding into the continent is finally reaching an equilibrium. After the funding boom and the decline that followed, a midpoint has been reached, and it is just a matter of how this is sustained.

See also: African startups raised $254m in October 2024 led by Moniepoint’s unicorn-making raise

$3.2bn raise: increased funding, declined equity raise

The numbers indicate that investment in African startups has witnessed a solid resurgence. Similarly, equity funding into the continent has also improved. Of the $2.65 billion raised in the first 10 months of 2025, $1.5 billion was raised in the form of equity, representing 56.6 per cent of the total and a 31 per cent increase from the previous year.

Similarly, of the $3.2 billion raised over the last 12 months, $1.9 billion came in the form of equity, representing nearly 60 per cent of the total and a 38 per cent year-over-year rise.

Recall that 2025 began on a high note for equity, though, with $262 million of the $289 million raised in January coming in the form of equity. This represented 90.6 per cent of the total. Indeed, of the $1.4 billion that had been raised by the midway point of June, $950 million came in the form of equity, representing 68 per cent of the total. Only 28.5 per cent came via debt financing.

But the trend took a different turn in July, which still remains the most-funded month of 2025. Of the $550 million raised by African startups that month, $493 million came in the form of debt financing, representing 89 per cent of the sum. This brought the total debt financing rate for the year to 45 per cent.

Overall, October is the best-performing month of 2025 for equity funding, with a total of $334 million. This represents an impressive 76 per cent of the total and could indicate a gradual return of investor confidence. This is particularly so considering that the equity share of funding has remained stable across two months.

But the trend has witnessed a reversal over August and September, when 87 per cent and 89 per cent of their respective monthly sums came in the form of equity. Thus, it remains a good year so far, and a good last 12 months for African startup funding.