African startups made significant strides in 2024, defying a decline in investment and raising a total of $2.2 billion in equity, grants, and exits. According to a recent report by Africa: The Big Deal, this remarkable resilience was achieved despite often restrictive legislative environments in several countries, which can pose challenges for startups from the outset.

The funding landscape has evolved, with venture capitalists investing in innovative companies and crowdfunding platforms enabling contributions from a broad base of individuals. This shift has enabled African startups to grow and expand, with two startups achieving "unicorn" status, a designation reserved for companies valued at $1 billion or more. Moniepoint surpassed a $1 billion valuation in late October, following the completion of its Series C funding round, while Tyme raised $250 million in funding, elevating its valuation to $1.5 billion.

The report reveals that 10 startups accounted for 51% of the total funding in 2024, the largest proportion since 2019. These startups spanned various sectors, including banking, transportation, electric vehicles, and renewable energy. The top 10 African startups that secured the most funding in 2024 include Tyme, Moniepoint, MNT-Halan, M-Kopa, d.light, Sun King, BasiGo, Spiro, Moove, and Nuitée.

In terms of geographical distribution, 86% of the 42 ventures that raised $10 million or more were based in the Big Four markets—Nigeria, Egypt, South Africa, and Kenya. Additionally, eight of the top 10 startups were also located in these countries. These four nations accounted for 84% of Africa's total startup funding that year. Kenya led with $638 million, representing 88% of East Africa's total funding of $725 million, making it the top funding recipient for the second consecutive year.

Nigeria followed closely with $410 million, nearly 70% of West Africa's $587 million. Egypt raised $400 million, despite a 22% decline in North Africa's overall funding, which totaled $478 million. South Africa secured $394 million, contributing to an 18% decrease in the region's total funding, which amounted to $397 million.

The growth of African startups is a testament to the region's potential for innovation and entrepreneurship. Despite the challenges posed by restrictive legislative environments, African startups have demonstrated remarkable resilience and adaptability. As the startup ecosystem continues to evolve, it will be interesting to see how these startups continue to grow and expand, and what impact they will have on the region's economic development.

For more information on the top 10 African countries with the highest tech funding in 2024, click here.

Source: Africa: The Big Deal, Solomon Ekanem