Startup investors favoured Kenya more in 2024 as more funding went to the East African country. For the second year running, East Africa attracted the most funding on the continent ($725 million), with Kenya responsible for 88 percent ($638 million) of the region’s raise, according to Africa: The Big Deal.
On Monday, the insight firm that tracks start funding of $100,000 and above revealed that startups in Africa raised $2.2 billion in equity, grants, and exits in 2024, a 25 percent decline from the $ 2.9 billion raised in 2023 and a 53 percent decline in the 4.6 billion raised in 2022.
The firm noted that a total of 188 ventures raised $1 million or more in 2024 (excluding exits), 10 percent less than in 2023. On Tuesday, the firm broke down the details of the year’s funding raises, stating that Nigeria attracted $410 million in 2024. The West African region raised $587 million, 27 percent less than 2023.
As usual, the Big Four, Kenya, Nigeria, Egypt, and South Africa, attracted 84 percent of all start-up funding (excluding exits). A further regional breakdown revealed that Egypt raised $400 million, and financing to Northern Africa fell 22 percent to $478 million. South Africa raised $394 million, and funding to its region fell 18 percent to $397 million.
Startups on the continent suffered from a slow start to funding in 2024 but raises rebounded in the second half. Africa minted two new unicorns, Moniepoint and Tyme Group, in the last quarter of 2024 to underscore its resilience amid a global slowdown in startup funding.