African start-ups raised $2.2 billion in equity, debt, and grants in 2024 (excluding exits), a figure that, while significant, marked a 25% decline compared to the $2.9 billion raised in 2023, according to Africa: The Big Deal.
Despite the dip, there were bright spots. A total of 188 ventures secured $1 million or more last year, just 10% fewer than in 2023.
Additionally, the exit front saw improvement, with 22 exits publicly announced in 2024 compared to 20 the previous year.
According to the report, the slow start to 2024 is largely to blame for the overall drop in funding, with just under $800 million raised in the first half of the year—the slowest semester since 2020.
However, the second half of the year brought a significant rebound, with $1.4 billion raised, a 25% year-over-year increase and an 80% jump compared to H1.
This surge made H2 2024 the second-best semester since the onset of the “funding winter” in mid-2022.
Driving these numbers were two mega-deals in Q4, involving Moniepoint and Tyme Group, which minted two new unicorns back-to-back—the first such events since early 2023.
Another notable trend was the shift in funding composition. Debt funding, which dominated in 2023—dubbed “The Year of the Debt” when it accounted for 38% of total funding—contracted by 40% year-over-year in 2024, contributing to the overall decline.
However, equity funding showed resilience, with $1.5 billion raised in 2024, down only 11% from the $1.7 billion raised in 2023.
This stabilization is encouraging, especially after equity funding plummeted 57% year-over-year in 2023.
Despite the challenges, the report underscores reasons for optimism, highlighting the rebound in the latter half of the year and the sustained stabilization in equity funding. “It’s not all doom and gloom,” the report notes, as the numbers point to a promising trajectory for the African start-up ecosystem.
Kenyan Startups That Raised Funding in 2024
In 2024, Kenyan startups demonstrated resilience and innovation, attracting significant investments across various sectors.
Collectively, these ventures secured approximately $250 million, accounting for 32% of all funding raised across Africa in the first half of the year.
These startups include: