In 2024, African startups attracted a significantly smaller portion of the global startup funding pool compared to other regions. According to Africa: The Big Deal, which tracks investments of $100,000 and above, the continent’s share of total funding was nearly on par with that of Miami, the 12th-largest city in the US by equity fundraising.
Africa received only 0.6 percent of global startup funding in 2024, which amounted to $1.5 billion, a tiny fraction of the $275 billion raised globally. In comparison, Miami raised $1.8 billion, slightly surpassing Africa’s total despite the continent’s much larger population of 1.4 billion people. “It seems wrong that such a populous continent attracts funding that’s comparable to that of a US city like Miami,” the report stated.
Furthermore, Africa saw an 11 percent drop in startup equity funding year-on-year, contrasting with growth in other regions. While Asia faced a 27 percent decline, largely due to a 56 percent drop in funding to China, other areas saw positive shifts. Notably, India—with a similar population and GDP to Africa—experienced a 40 percent rise in startup funding. In contrast, North America and Latin America both saw increases in funding.
“The global trend in 2024 shows that equity startup funding in Africa contracted by 11 percent, while globally it grew by 4 percent,” the firm observed.
Despite this setback, Africa has demonstrated solid growth over the last four years. From 2020 to 2024, the continent’s equity funding increased by 62 percent, from $0.9 billion to $1.5 billion, highlighting a long-term upward trajectory that stands out compared to other regions. Over the same period, US, Europe, and India saw minimal growth, while Latin America, Asia, and China experienced major declines.
“Africa’s long-term growth contrasts with these other regions, which have mostly returned to their 2020 levels,” the report noted.
However, the persistent funding gap underscores the need for stronger investor confidence in African startups. Without significant changes in investment patterns, Africa risks missing out on essential capital that could foster innovation, create jobs, and drive economic transformation across the continent.
