African startups raised a total of $2.2 billion in 2024 through equity, debt, and grants, with $1.5 billion of that coming from equity, according to a report by Africa: The Big Deal. However, this figure represents a mere 0.6% of the global total of $275 billion in startup funding, highlighting a significant gap in investment opportunities on the continent.

Despite being home to nearly 1.4 billion people, Africa's startup ecosystem attracts roughly the same amount in startup funding as Miami, the 12th largest city in the United States, which raised $1.8 billion in equity last year. This disparity underscores a critical missed opportunity for investors and entrepreneurs alike.

The report notes that while talent is distributed evenly across the continent, opportunities are not, and many investors are missing out on the potential of Africa's entrepreneurs and markets. This is particularly striking given Africa's share of global GDP, which is around 5%, and its population, which makes up about 18% of the world's total.

In terms of equity fundraising, Africa saw an 11% decline year-on-year in 2024, but fared better than Asia, which experienced a 27% drop, largely due to China's significant slump (-56% YoY). However, India, with a population and GDP comparable to Africa's, had a strong year, achieving over 40% growth.

On a global scale, equity funding grew by 4% in 2024, with the US and North America (+21% YoY) and Latin America (+9% YoY) seeing growth. Looking at longer-term trends, Africa has done remarkably well, with funding rising by 62% from $0.9 billion in 2020 to $1.5 billion in 2024.

Other regions, such as the US (+5%), Europe (+9%), and India (+1%), have recovered to their pre-heatwave funding levels. Meanwhile, other parts of the world are still struggling to reach 2020 levels, with Latin America (-33%), Asia (-54%), and China (-78%) seeing significant declines. Overall, Africa stands out as an outlier, showing a strong recovery despite the global contraction.

The report's findings highlight the need for investors to take a closer look at the opportunities presented by Africa's startup ecosystem. With its growing population, increasing mobile penetration, and improving business environment, the continent is ripe for investment and innovation. As the report notes, talent is distributed evenly across the continent, but opportunities are not – it's time for investors to take notice.

The implications of this report are far-reaching, and could have a significant impact on the future of startup funding in Africa. As the continent continues to grow and develop, it's clear that investment opportunities will abound. The question is, will investors be willing to take the leap and tap into Africa's vast potential?