African Start-up Funding Recovers, Turns to Debt
African Start-ups See Mixed Results in First Half of 2025 The first half of 2025 has brought some positive developments for African start-ups, with increased access to funding from global investors. However, the way this funding is being structured is shifting, indicating a more cautious approach by investors. According to data from the Africa Venture Capital Association (AVCA), venture capital funding for African start-ups rose by 50% in the first six months of 2025, reaching $1.2 billion compared to $800 million in the same period in 2024. A significant portion of this funding came in the form of venture debt, which accounted for 80% of the total amount raised. This shift highlights a growing trend where start-ups are increasingly relying on debt financing rather than traditional equity investments. The number of deals also saw an increase, rising from 205 in 2024 to 239 in 2025—a 11% growth. East Africa contributed significantly to this growth, with 22% of the deals—worth around ...