African Tech Startups Raise $306 Million in Q3 2024 Amidst Ongoing Funding Decline
African tech startups secured $306,367,000 in funding during Q3 2024, bringing the total raised for the first nine months of the year to $836,522,000—a 40% decrease compared to the same period in 2023. This is according to the latest African Tech Startups Funding Report, released by Disrupt Africa in January.
In 2023, African tech startups had raised a total of $2.4 billion from 406 companies, but the global capital shortage that began to affect markets last year has continued to impact investment in 2024. Funding levels for Q1 and Q2 dropped by over 50% compared to the same period in 2023, and Q3 numbers reflect a similar downturn.
Despite the continued decline, there are signs of recovery. The pace of the downturn has slowed, with the rate of decline smaller in Q3 2024 than in the previous quarters. In comparison, African startups had raised $1.4 billion by the end of September 2023, which was already down 48% compared to 2022.
Tom Jackson, co-founder of Disrupt Africa, expressed cautious optimism about the market’s future. “While Q3 2024 may not have been stellar in the context of recent years, there are signs of improvement amidst the funding slowdown,” said Jackson. “The decline in investment has slowed both year-on-year and quarter-on-quarter, and big rounds from companies like NALA, MNT-Halan, and Paymob have helped lift the mood.”
Jackson added that although the African tech sector remains in a funding trough, new venture capital funds announced recently offer hope for the market’s eventual recovery.
