African startups raised a total of $460 million in the first quarter of the year, including all deals of at least $100,000. This is according to data from the African startup venture funding analytics company, Africa the Big Deal.
On a month-by-month basis, African startups raised $289 million in January, followed by a not-so-impressive $119 million in February. March was slower as startups only raised $50 million.
The quarterly total of $460 million is a significant drop from about $774 million tallied during the last quarter (Q4, 2024), representing a 40.5 per cent decrease. Indeed, the quarterly total means Q1 2025 becomes the second-slowest quarter since Q4 2020, in the middle of the global pandemic.
Yet, it isn’t so bad when compared to the same period last year (Q1 2024). Then, African startups raised $486 million, representing only a 5.3 per cent decline.
The problem, however, is that many do not consider the first quarter of 2024 a strong quarter in terms of investments. Nonetheless, it proves the first quarters of the year haven’t always been the strongest.
On a positive note, however, with 52 startups announcing at least $1 million or more in funding, the quarter was able to equal the 2023/2024 average on the number of startups that have announced at least $1 million.
African startups funding: Nigeria, Kenya joint at the top in Q1
In what is described as the battle of the Big Brothers, Nigeria and Kenya emerged as the top funding destinations for African startups in the first quarter of 2025.
Both countries are neck in neck in the race with 24 per cent of the total funding lot. Both countries emerge as the first among equals, with over $110 million each during the quarter.
Recall that Kenya finished 2024 as the most-funded African country, responsible for $638 million, representing 29 per cent of the total $2.2 billion raised on the continent. With that, the East African country has displaced Nigeria as the preferred startup investment destination for two consecutive years (2023 and 2024).
See also: Startup funding: Kenya is Africa’s most preferred destination in 2024
Nigeria, the former big brother of the continent, managed just over 18 per cent of the total funding raised in 2024. This was largely due to a rally much later in the year that saw the West African giant produce a new unicorn.
The Q1 2025 numbers show that the rally has yet to relent and has indeed been carried into the new year.
Behind Nigeria and Kenya is South Africa, which raised just over $101 million in the first quarter of 2025, representing 22 per cent of the $460 million raised in the quarter.
South Africa’s Q1 share represents a strong showing, considering that it was only responsible for 17.9 per cent of the continental total last year. Just like Nigeria, startups in the Southern African country rallied late last year, and it seems the momentum has continued into the first quarter of this year.
Egypt, the last of the Big 4 in Africa, attracted $61 million of the continental total in Q1. This means startups in the country attracted 14 per cent of the quarterly total.
In sum, 83 per cent of the total Q1 funding went to the Big Four. Togo completed the top five countries in the quarter on the back of Gozem’s super raise back in February. The Togolese super app raised $30 million in a Series B funding round led by SAS Shipping Agencies Services and Al Mada Ventures.
See also: Kwara emerges as ‘Yahoo Boys’ capital as EFCC arrests 134 fraudsters in March
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