African start-ups break record with securing $1.2bn funding in 2024 — report

African start-ups recorded an impressive fundraising performance in July 2024, raising $420 million, the highest monthly figure since the tracking began in 2019, according to a recent report by Africa: The Big Deal.

This sum also represents 2.5 times the average monthly amount raised over the past one year, signaling a strong rebound in investment activity amid a global funding slowdown. The ecosystem has now raised cumulatively over $1.2b since the beginning of the year, further cementing the continent’s position as a key player in the global start-up sector. Last month, 47 ventures raised at least $100,000, making it this year’s second-best month after May, when 40 grant announcements were made. Out of these 47 ventures, 16 raised at least $1 million, which aligns with the monthly average for the first half of the year.

This diverse range of funding activities indicates a healthy and dynamic startup ecosystem across the continent. Combined, these start-up deals have significantly boosted the overall funding figures and highlighted the continued investor interest in impactful and scalable African start-ups. But despite these impressive numbers, the distribution of funds highlights some disparities, with Kenyan and Nigerian startups having secured most of the funding, attracting about $800 million and $410 million in 2023 respectively. This trend has continued into 2024, with Kenyan startups having secured $244 million by July, representing 32% of the total funding raised, while Nigeria garnered about $172 million.