Top African countries for startup funding in 2025: Q2 performance forecast
- African startups raised $460 million in Q1 2025, a 5% dip from Q1 2024's $486 million.
- Kenya, Nigeria, South Africa, and Egypt captured 83% of the total funding.
- Emerging markets such as Togo, Rwanda, and Ghana are gaining attention from investors.
The current funding landscape for African startups indicates a need for founders to adapt to changing investor preferences by focusing on measurable traction and local market penetration. While the dip in funding may seem concerning, it also presents an opportunity for startups to refine their business models and strengthen their foundations before pursuing larger investments. The rise of local and diaspora VCs could democratize access to funding, but more needs to be done to support underrepresented founders, particularly women.
