African Startups Face Stricter Investment Scrutiny Compared to Global Counterparts
- African startups raised nearly $300 million in January 2025, with 40 companies securing $289 million in funding.
- There was a 25% drop in overall startup funding in 2024, with African startups securing $2.2 billion, down from $2.9 billion in 2023.
- Kenya, Nigeria, Egypt, and South Africa secured 84% of all startup funding in Africa in 2024.
The disparity in investment scrutiny between African startups and their global counterparts highlights a significant barrier to growth in the region. Investors need to reassess their risk perceptions and adopt a more supportive approach to foster innovation and entrepreneurship in Africa. Encouraging local venture capitalists to invest without imposing excessive hurdles could help bridge this gap.
