African startups raised $460 million in the first quarter of 2025, according to data from Africa: The Big Deal. This total includes all funding deals worth at least $100,000. Although promising, this marks a 40.5% drop compared to the $774 million raised in Q4 2024.
Startups raised the most in January 2025, collecting $289 million. However, February saw a sharp drop with $119 million, and March slowed further, with startups raising just $50 million. This made Q1 2025 the second-slowest quarter since Q4 2020, during the peak of the pandemic.
Still, the numbers aren’t all bad. When compared to Q1 2024, where startups raised $486 million, the drop is only 5.3%. While the first quarter of 2024 was also weak, it shows that early-year funding trends tend to be slower.
One highlight of the quarter was that 52 startups raised at least $1 million. This matches the average seen in 2023 and 2024, proving that investor interest remains strong in top-performing startups.
Nigeria and Kenya Tie as Top African Startup Hubs
Nigeria and Kenya each secured 24% of the total funding in Q1 2025. Both countries raised over $110 million, showing strong momentum from the previous year. In 2024, Kenya led Africa with $638 million, displacing Nigeria as the top investment destination for two years in a row.
Still, Nigeria’s late rally in 2024 helped it regain strength, and that momentum has continued into 2025. South Africa also performed well, improving on its 17.9% share in 2024. Its startups kept the pace from their late 2024 boost.
Egypt, the fourth member of Africa’s Big Four startup ecosystems, raised $61 million, making up 14% of the quarterly total.
Togo completed the top five countries in Q1, thanks to Gozem’s $30 million Series B raise in February. The round was led by SAS Shipping Agencies Services and Al Mada Ventures.
Overall, 83% of Q1 funding went to the Big Four: Nigeria, Kenya, South Africa, and Egypt, showing that most of Africa’s startup investments remain concentrated in these countries.
- Startup: EmoSim Launches in Nigeria
- Nigerian Startup, Zeeh Africa shortlisted in VivaTech Awards
- 7 Nigerian Startups to Pitch at Africa Tech Summit London 2025
- African Entrepreneurs Eye develoPPP Ventures’ €100k Boost
- E-commerce Startups in Africa Struggle as Q1 Funding Falls
- Nigerian-Built App Endowpay Sparks Buzz with Smart AI Payments
3 replies on “African Startups Raise $460 Million in Q1 2025”
hi
[…] businesses,” he said. The initiative, jointly funded by the state and the World Bank, aims to strengthen Benue’s economy from the […]
[…] African startup founders often struggle to build great products while managing tight budgets. Rising costs and limited funding make things even harder. But some entrepreneurs are finding smart ways to grow and succeed despite the odds. […]