Funding for African start-ups has surged to a three-year high, defying global headwinds triggered by US tariffs and investor caution across other emerging markets.
New data from Africa: The Big Deal shows that start-ups on the continent raised $2.65 billion between January and October 2025, up 56% from $1.7 billion in the same period last year. That figure also surpasses the comparable period in 2023, underscoring a steady rebound in venture activity.
“Things are looking up for the ecosystem, with all key growth indicators showing double-digit gains,” the report said. “Equity funding alone climbed 31% year on year, nearly matching the total recorded in 2023.”
The number of African start-ups that raised at least $1 million also increased to 179, compared with 159 in 2024, signaling improved investor confidence and a gradual return of capital to early- and growth-stage ventures.
October delivers one of the strongest months
October was one of the standout months for African start-ups this year, with firms raising over $442 million in new funding (excluding exits). It was the second-best month of 2025, behind July, and a significant share—76% or $334 million—came in the form of equity.
The month’s largest deals reflected the diversity and maturity of the ecosystem. Spiro, a top e-mobility firm, secured $100 million, marking the largest-ever investment in the continent’s e-mobility sector. Moniepoint, one of Africa’s top payments players, followed with a $90 million top-up to its ongoing mega-round.
Other notable deals included Tagaddod, Ctrack, and Mawingu, each of which raised $20 million or more in equity. Debt funding also remained active, highlighted by two major bond issuances: $71 million by MNT-Halan and roughly $23 million by valU.
In total, 53 ventures raised at least $100,000 in October—above the monthly average for the year. “Equity remains the dominant instrument, showing investor appetite for scalable, long-term ventures rather than short-term credit,” analysts at Africa: The Big Deal noted.
12-month outlook remains strong
Looking at the broader 12-month period from November 2024 to October 2025, African start-ups collectively raised $3.2 billion, up 50% year-on-year. Equity accounted for $1.9 billion of that total, representing a 38% rise over the previous year.
During the same period, 207 ventures raised at least $1 million, up 8% from the year before. This steady growth indicates a maturing ecosystem with more firms reaching Series A and later funding rounds—a sign of investor confidence in scalability and sustainable business models.
“While the final months of 2025 will determine whether the upward trend continues, there is definitely room for optimism,” the report said.
