African Startups Surge Past $2 Billion in Funding Milestone, Outpacing Last Year's Total

African innovation is roaring back to life, with startups across the continent securing more than $2 billion in investments from January to August this year—already eclipsing the full tally for the same stretch in 2024, according to a fresh industry report.

The "Africa Venture Pulse: State of Investment 2025" from Briter Bridges highlights this impressive rebound, marking a reversal of the funding drought that followed the 2022 boom. While the total cash influx climbed above the sub-$2 billion mark of last year, the pace of deals slowed, dipping just under 500 compared to over 500 in the prior period. Investors, it seems, are betting bigger on proven players, with the average deal size rebounding to about $1 million—a level not seen since 2022. Early-stage ventures under that threshold took a hit, as backers favored more mature outfits amid lingering economic jitters.

Regionally, the funding map shows a vibrant but uneven landscape. East Africa led the pack with roughly $865 million, closely trailed by Southern Africa at $845 million. North Africa pulled in $450 million, while West Africa's slice shrank to $420 million, signaling shifting investor appetites.

Fintech remains the undisputed heavyweight, gobbling up over $1 billion and underscoring its role as the continent's economic engine. Hot on its heels, cleantech posted its best performance yet, raising nearly $950 million—much of it via debt instruments—as global eyes turn to sustainable solutions. Sectors like healthtech, mobility, and proptech lagged further back, but the overall momentum points to a maturing ecosystem.

One stark reality persists: gender disparity. Nearly 90% of the funds flowed to male-led teams, leaving just 10% for women entrepreneurs—a gap that experts say demands urgent action to unlock broader growth.

Briter Bridges hails 2025 as a pivotal turnaround year, poised to build on this momentum if regional challenges like infrastructure and policy hurdles ease. As African startups eye even bolder horizons, this funding wave could fuel the next generation of homegrown giants on the global stage.