African Startups Bag $2B in Funding Amid Fewer but Bigger Deals, Report Shows

African tech ventures are proving their resilience, pulling in over $2 billion in investments during the first eight months of 2025, even as the number of deals takes a hit—surpassing the entire figure for the same period last year.

According to the "Africa Venture Pulse: State of Investment 2025" by Briter Bridges, this funding surge signals a strong comeback after a post-2022 slowdown. While the total investment crossed the $2 billion threshold—beating last year's under-$2 billion mark—the deal count slipped below 500, down from more than 500 previously. Backers are playing it smart, focusing on larger rounds with an average size of around $1 million, a rebound from recent lows and reminiscent of 2022 levels. Early-stage startups under that amount felt the pinch most, as caution lingers from economic uncertainties.

The investment landscape varies sharply by region. East Africa topped the charts with about $865 million, nipping at the heels of Southern Africa's $845 million haul. North Africa secured $450 million, but West Africa saw its share dwindle to $420 million, reflecting evolving priorities among funders.

Fintech continues to dominate, capturing more than $1 billion and solidifying its status as Africa's growth powerhouse. Cleantech emerged as a breakout star, raising nearly $950 million—largely through debt financing—as worldwide interest in green tech intensifies. Meanwhile, areas like healthtech, mobility, and proptech trailed behind, though the ecosystem as a whole shows signs of maturation.

A persistent issue clouds the horizon: Gender imbalance in funding. Almost 90% of the capital went to male-founded teams, with women-led startups receiving just 10%—a disparity that analysts warn could hinder inclusive progress.

Briter Bridges views 2025 as a turning point for recovery, with potential for even greater strides if obstacles like infrastructure gaps and regulatory snags are addressed. As these startups gear up for bigger ambitions, this influx could catapult African innovation onto the world map.