Africa’s start-up ecosystem has staged a rebound in 2025, with total funding crossing the $2 billion milestone by mid-August, already surpassing the full-year performance of 2024.
The turnaround comes after two years of sluggish growth and signals renewed investor confidence in the continent’s innovation landscape.
According to data from Africa: The Big Deal, African start-ups have raised just over $2 billion (excluding exits) as of August 15, 2025. In 2024, the same milestone was not reached until December, underscoring the faster momentum this year. With less than $250 million needed to beat last year’s tally, the ecosystem is on track for one of its strongest years since the 2021 and 2022 boom.
A strong July provided much of the boost. Start-ups raised $550 million in the month, the highest in over two years, with 61 companies across 15 countries securing at least $100,000 each.
Two Kenyan-born clean energy players dominated: d.light raised $300 million through receivables financing, while Sun King secured $156 million in debt. Together, they accounted for 83 percent of July’s total, highlighting the central role of renewable energy financing in Africa’s funding landscape.
Debt represented 89 percent of July’s inflows and 45 percent of total 2025 funding so far, marking a structural shift as investors lean towards debt over equity in asset-heavy sectors.
Equity deals were smaller, totaling just $58 million in July, with Rwazi’s $12 million Series A the largest. Still, cumulative equity funding in 2025 passed the $1 billion mark, achieved months earlier than in 2024, showing that investor appetite for ownership stakes persists, albeit with greater caution.
While Nigeria, Kenya, Egypt, and South Africa hosted most deals, 15 countries recorded activity. Libya logged its first-ever $100k+ deal, expanding the map of African start-up investment beyond traditional hubs.
Analysts expect total 2025 funding to reach $3 billion to $3.5b billion well above the past two years but below the $4 billion highs of 2021 and 2022. Challenges remain, including reliance on debt and sluggish equity recovery, but the outlook is more positive.
