In a remarkable turn of events, African startups secured $365 million in funding in June 2025, making it the strongest funding month in nearly a year and the best so far in 2025. This fresh wave of capital signals renewed investor confidence in Africa’s innovation economy and may indicate a broader recovery trend following a period of funding decline.
According to data from Africa: The Big Deal, the robust performance in June brought total startup funding for H1 2025 (January to June) to an impressive $1.35 billion. This figure represents a massive 78% increase compared to the $800 million raised during the same period in 2024. Interestingly, this first-half total almost matches the $1.37 billion recorded in the second half of 2024, showing only a slight 1.5% dip.
This consistency highlights that June’s success wasn’t a lucky one-off. In fact, four out of the six months in H1 2025 recorded funding above $250 million, showing positive momentum across the board. While March was a slower month, it now looks like an exception in an otherwise rising trend.
Monthly Growth in Perspective
The monthly average for H1 2025 stands at $237 million, a major leap from $133 million per month in H1 2024 and well above the $187 million monthly average for all of 2024. These figures confirm that 2025 has so far outperformed expectations in terms of startup capital flow.
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Equity and Debt: A Balanced Growth Path
Equity funding remained the leading source of capital for African startups in H1 2025, with a total of $950 million raised, marking a 79% increase from the same period last year. However, it is still slightly down compared to $1.02 billion raised in equity during H2 2024, reflecting a modest 7% drop.
On the other hand, debt funding made a surprising comeback. In June alone, startups raised $227 million in debt, which is more than half of the entire H1 debt total. This was also the highest monthly debt rise in over two years. Notably, Senegalese fintech giant Wave contributed significantly with a $137 million raise.
By the end of June, debt funding had reached $400 million, representing a 55% increase over H1 2024 and aligning closely with the $405 million total for H2 2024.
Investor Confidence on the Rise
Industry experts suggest that this sustained growth in both equity and debt is a clear sign that Africa’s startup funding ecosystem is stabilizing, following a downturn that began in 2022. The consistent inflow of funds reflects increasing investor confidence, improving deal structures, and growing interest in the continent’s entrepreneurial potential.
Nigeria Slows While Egypt Surges
Despite the positive trend across Africa, Nigeria’s startup ecosystem has seen a relative funding slowdown. Once a dominant force in African tech, Nigeria did not have any startups listed in the top 10 fundraisers for May. In contrast, Egyptian startups took the lead, attracting major ticket sizes and continuing to draw regional and global attention.
Future Outlook
With strong momentum and diversified funding sources, African startups are well-positioned for continued growth in 2025. If current trends hold, the second half of the year could mark the beginning of a sustained recovery for tech investment in Africa, opening doors for job creation, digital transformation, and global partnerships.
For entrepreneurs, investors, and stakeholders across the continent, the message is clear: Africa is back on the startup map, and it’s gaining speed.
