African startup funding finally crosses $1 billion in 2024, 2 months later than 2023​

Venture capital funding into African startups in 2024 has finally crossed the $1 billion mark. This was revealed in a mail by African startup funding analytics company, Africa the Big Deal. According to the report, the milestone was achieved earlier than expected, even though it still fell far behind compared to when the ecosystem achieved the same feat in May 2023 and as early as February in 2022.

The milestone was powered by two massive investments attracted to the continent in July. First is Kenyan clean energy company, d.light which landed a more than significant $176 million securitisation facility. Powered by social impact-focused asset management company, African Frontier Capital, the facility is multi-currency and will enable access to reliable, renewable energy for an estimated six million people across Kenya, Uganda and Tanzania over the next three years.

The other investment is MNT-Halan’s $157.5m raise. The raise featured contributions of $40 million from the International Finance Corporation (IFC), with the remaining funds supplied by Development Partners International (DPI), Lorax Capital Partners, funds managed by Apis Partners LLP, Lunate, and GB Corp. The new capital influx is expected to power the Egyptian unicorn’s imminent geographical expansion.

“We can now confidently say that the $1 billion in start-up investments for 2024 has been reached! The ecosystem closed H1 2024 with just under $800 million raised (excluding exits), and it was only a matter of time until it crossed the $1 billion mark. Things happened a little faster than expected though thanks to two mega deals announced since the middle of the month,” said the Africa the Big Deal report.

July set to become highest funding month amid funding slowdown

The month of July is already poised to become the highest funding month of 2024, thanks to d.light and MNT Halan’s massive funding. Added to the $40 million Series A from the international money transfer app, Nala earlier in the month, and other smaller deals, the month is looking to close at a figure really close to the $400 million mark. This will likely be more than what was raised in the entire second quarter of 2024. Indeed, the numbers will make July 2024 the most successful month in terms of fundraising in Africa in more than a year.

This development is coming amid a funding winter that has seen a great reduction in venture capital investments in the continent since the end of 2022. The crunching winter continued to bite harder, progressively getting worse all through 2023 and into 2024. African tech startups were able to raise only $780 million in the first half of 2024.

The total H1 2024 funding represents a 31 per cent decline from the total funding attracted in the second half of 2023. But it looks even worse if compared with the total funding numbers from the first half of 2023, representing an even steeper 57 per cent decline.

Indeed, African tech startup funding between January and June 2024 is the lowest recorded since the second half of 2020, indicating how much funding into the continent continues to decline. Given this context, one might say the recent numbers are indeed encouraging and paint a picture that better days are indeed ahead.

“While the pace of investments has not yet fully picked up compared to the past three years (the $1 billion mark was reached in May in 2021, in April in 2023 and as early as February in 2022), this news is encouraging as it shows that 2024 might in the end deliver stronger results than 2019 and 2020 it is often benchmarked against (and when the $1 billion mark was only reached in November). In fact, start-ups in Africa have already raised more funding (in 2024) than they had in 2020,” the report reads.

See also: African tech startups raised $780m in H1 2024, the lowest half-year funding since 2020

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Venture capital funding into African startups in 2024 has finally crossed the $1 billion mark. This was revealed in a mail by African startup funding analytics company, Africa the Big Deal. According to the report, the milestone was achieved earlier than expected, even though it still fell far behind compared to when the ecosystem achieved the same feat in May 2023 and as early as February in 2022.

The milestone was powered by two massive investments attracted to the continent in July. First is Kenyan clean energy company, d.light which landed a more than significant $176 million securitisation facility. Powered by social impact-focused asset management company, African Frontier Capital, the facility is multi-currency and will enable access to reliable, renewable energy for an estimated six million people across Kenya, Uganda and Tanzania over the next three years.

The other investment is MNT-Halan’s $157.5m raise. The raise featured contributions of $40 million from the International Finance Corporation (IFC), with the remaining funds supplied by Development Partners International (DPI), Lorax Capital Partners, funds managed by Apis Partners LLP, Lunate, and GB Corp. The new capital influx is expected to power the Egyptian unicorn’s imminent geographical expansion.

“We can now confidently say that the $1 billion in start-up investments for 2024 has been reached! The ecosystem closed H1 2024 with just under $800 million raised (excluding exits), and it was only a matter of time until it crossed the $1 billion mark. Things happened a little faster than expected though thanks to two mega deals announced since the middle of the month,” said the Africa the Big Deal report.

July set to become highest funding month amid funding slowdown

The month of July is already poised to become the highest funding month of 2024, thanks to d.light and MNT Halan’s massive funding. Added to the $40 million Series A from the international money transfer app, Nala earlier in the month, and other smaller deals, the month is looking to close at a figure really close to the $400 million mark. This will likely be more than what was raised in the entire second quarter of 2024. Indeed, the numbers will make July 2024 the most successful month in terms of fundraising in Africa in more than a year.

This development is coming amid a funding winter that has seen a great reduction in venture capital investments in the continent since the end of 2022. The crunching winter continued to bite harder, progressively getting worse all through 2023 and into 2024. African tech startups were able to raise only $780 million in the first half of 2024.

The total H1 2024 funding represents a 31 per cent decline from the total funding attracted in the second half of 2023. But it looks even worse if compared with the total funding numbers from the first half of 2023, representing an even steeper 57 per cent decline.

Indeed, African tech startup funding between January and June 2024 is the lowest recorded since the second half of 2020, indicating how much funding into the continent continues to decline. Given this context, one might say the recent numbers are indeed encouraging and paint a picture that better days are indeed ahead.

“While the pace of investments has not yet fully picked up compared to the past three years (the $1 billion mark was reached in May in 2021, in April in 2023 and as early as February in 2022), this news is encouraging as it shows that 2024 might in the end deliver stronger results than 2019 and 2020 it is often benchmarked against (and when the $1 billion mark was only reached in November). In fact, start-ups in Africa have already raised more funding (in 2024) than they had in 2020,” the report reads.

See also: African tech startups raised $780m in H1 2024, the lowest half-year funding since 2020

 This is coming amid a startup funding decline  

Venture capital funding into African startups in 2024 has finally crossed the $1 billion mark. This was revealed in a mail by African startup funding analytics company, Africa the Big Deal. According to the report, the milestone was achieved earlier than expected, even though it still fell far behind compared to when the ecosystem achieved the same feat in May 2023 and as early as February in 2022.

The milestone was powered by two massive investments attracted to the continent in July. First is Kenyan clean energy company, d.light which landed a more than significant $176 million securitisation facility. Powered by social impact-focused asset management company, African Frontier Capital, the facility is multi-currency and will enable access to reliable, renewable energy for an estimated six million people across Kenya, Uganda and Tanzania over the next three years.

The other investment is MNT-Halan’s $157.5m raise. The raise featured contributions of $40 million from the International Finance Corporation (IFC), with the remaining funds supplied by Development Partners International (DPI), Lorax Capital Partners, funds managed by Apis Partners LLP, Lunate, and GB Corp. The new capital influx is expected to power the Egyptian unicorn’s imminent geographical expansion.

“We can now confidently say that the $1 billion in start-up investments for 2024 has been reached! The ecosystem closed H1 2024 with just under $800 million raised (excluding exits), and it was only a matter of time until it crossed the $1 billion mark. Things happened a little faster than expected though thanks to two mega deals announced since the middle of the month,” said the Africa the Big Deal report.

July set to become highest funding month amid funding slowdown

The month of July is already poised to become the highest funding month of 2024, thanks to d.light and MNT Halan’s massive funding. Added to the $40 million Series A from the international money transfer app, Nala earlier in the month, and other smaller deals, the month is looking to close at a figure really close to the $400 million mark. This will likely be more than what was raised in the entire second quarter of 2024. Indeed, the numbers will make July 2024 the most successful month in terms of fundraising in Africa in more than a year.

This development is coming amid a funding winter that has seen a great reduction in venture capital investments in the continent since the end of 2022. The crunching winter continued to bite harder, progressively getting worse all through 2023 and into 2024. African tech startups were able to raise only $780 million in the first half of 2024.

The total H1 2024 funding represents a 31 per cent decline from the total funding attracted in the second half of 2023. But it looks even worse if compared with the total funding numbers from the first half of 2023, representing an even steeper 57 per cent decline.

Indeed, African tech startup funding between January and June 2024 is the lowest recorded since the second half of 2020, indicating how much funding into the continent continues to decline. Given this context, one might say the recent numbers are indeed encouraging and paint a picture that better days are indeed ahead.

“While the pace of investments has not yet fully picked up compared to the past three years (the $1 billion mark was reached in May in 2021, in April in 2023 and as early as February in 2022), this news is encouraging as it shows that 2024 might in the end deliver stronger results than 2019 and 2020 it is often benchmarked against (and when the $1 billion mark was only reached in November). In fact, start-ups in Africa have already raised more funding (in 2024) than they had in 2020,” the report reads.

See also: African tech startups raised $780m in H1 2024, the lowest half-year funding since 2020