The Big Deal puts African tech startup funding in H1 at $780m

TLDR

The African startup funding winter has intensified in 2024, with African tech startups raising only $780 million in the first half of the year. This information was disclosed in a report by funding database, Africa the Big Deal.

Per the report, the total funding for H1 2024 represents a 31% decline from the total funding secured in the second half of 2023. The situation appears even more dire when compared to the first half of 2023, showing a sharp 57% decline.

Indeed, the funding for African tech startups between January and June 2024 is the lowest recorded for a semester since the second half of 2020, highlighting the continuing decline in investment in the continent's tech sector.

Key Takeaways

Two-thirds of the total $780 million funding raised in the first half of 2024, amounting to $513 million or 66%, came in the form of equity. This marks an improvement compared to 2023, where only 60% of funding was equity-based. Meanwhile, 33% of the total funding was in the form of debt, a decline from 38% in 2023, and 1% came from grants. Kenya emerged as the top destination for African tech startup funding, attracting $244 million, which accounts for 32% of the total $780 million. Nigeria followed, securing $172 million, representing 23% of the total funding.

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