Startups in Africa have raised $ 2.2 billion in equity, grants, and exits in 2024, according to Africa: The Big Deal.
This number marks a 25 percent decline in the $ 2.9 billion raised in 2023 and a 53 percent decline in the 4.6 billion raised in 2022. According to the report, a total of 188 ventures raised $1 million or more in 2024 (excluding exits), which is only 10 percent less than 2023. The year also saw 22 exits made public last year, an increase from 20 in 2023.
The Big Deal adds that the performance of startups last year is a culmination of the slow start of the year, as well as rebounds that happened towards the end of the year.
It said, “The relative counter-performance of 2024 is mostly to be blamed on a slow start of the year with just under $800m raised in H1, the slowest semester since 2020.
“However, there was a serious rebound in the later part of the year as $1.4b was raised in H2 alone (+25 percent YoY and +80 percent compared to H1), which made it the second-best semester since the beginning of the ‘funding winter’ in mid-2022.”
Read also: Only one top $100m+ African start-up led by female CEO — Report
It added, “The numbers were driven in part – but absolutely not in full – by the two mega deals of Moniepoint and Tyme Group in Q4, minting two new unicorns back-to-back, the first such events since early 2023.”
The report further reveals that another reason for the decline in funding is the decline in debt funding.
“The share of debt in the overall funding announced remained high in 2024 (30 percent), a 38 percent decline from 2023. While debt declined by 40 percent YoY, the total equity raised in 2024 ($1.5b) was ‘only’ -11% below 2023 numbers ($1.7 billion),” it stated.
Experts reveal that it is encouraging to see equity levels stabilising, after taking the hardest hit in 2023 at 57 percent YoY.
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