In a significant boost for the continent’s tech ecosystem, African startups raised over $1 billion in the first five months of 2025 — a milestone that not only reflects renewed investor confidence but also highlights the competitive edge of regional innovation hubs. According to a new report by Africa: The Big Deal, Nigeria secured the third-highest share of the total funds raised, trailing Egypt and South Africa.
The report disclosed that Nigerian startups attracted over $162 million in funding between January and May 2025, accounting for 15% of the total funds raised continent-wide. Egypt led with over $332 million (31%), followed by South Africa with $273 million (26%), while Kenya came in fourth with $132 million (12%). Combined, these “Big Four” markets absorbed 84% of the entire investment recorded across Africa.
Compared to the same period in 2024 when African startups raised $750 million, 2025 is showing accelerated growth. “It took until mid-July last year to reach $1 billion. This year, the mark was hit by the end of May — seven weeks ahead,” said Max Giacomelli, co-founder of Africa: The Big Deal.
Fintech startups once again led the funding charts, attracting $484 million — nearly half (46%) of all investments. The financial technology space continues to appeal to venture capitalists due to its scalable solutions and wide addressable markets.
Health tech followed with $149 million (14%), bolstered primarily by hearX’s $100 million round in April, while energy tech drew $106 million (10%), indicating growing investor interest in sustainable power solutions.
Out of the total funding pool, 77% was raised through equity, amounting to $810 million. Debt financing made up 13%, while grants and bonds accounted for the remainder — including a record-setting $50 million corporate bond issuance by Egypt-based MNT-Halan in May.
Nigeria, despite coming in third, remains a market to watch — particularly with mobility startup Moove rumored to be on the brink of raising $300 million, potentially securing its unicorn status. Industry analysts say it’s now more a matter of “when” than “if” the company will announce the deal.
The increasing capital flow into Nigerian startups signals resilience in the local entrepreneurial space despite macroeconomic challenges and regulatory uncertainty. Lagos remains a key hub for venture activity, with fintech, mobility, and agritech sectors driving much of the innovation.
In May alone, 36 African startups announced funding rounds exceeding $100,000, slightly down from previous months. However, the median deal value rose, with at least seven companies securing over $10 million each — a signal of stronger investor commitment to scalable business models.
The report also highlighted growing participation from previously underrepresented African markets. Although the Big Four dominate, the study noted that 20 countries recorded at least one deal over $100,000, hinting at a slow but steady regional diversification of the startup ecosystem.
With over $1 billion already secured in less than half the year, analysts believe African startups are on course to surpass the $2.2 billion raised in all of 2024. The sustained investor interest, despite global capital constraints, signals growing trust in the continent’s tech potential.
Moreover, as governments across Africa ramp up digital economy policies and innovation-friendly legislation — such as Nigeria’s Startup Act and the Lagos Innovation Bill — stakeholders are optimistic about stronger pipelines, improved exits, and expanded international partnerships.
While Egypt and South Africa currently lead the pack in total funding volumes, Nigeria’s continued presence among the top three affirms its strategic importance in Africa’s innovation landscape. With landmark deals expected soon and structural reforms underway, the country’s startup ecosystem could yet be on the cusp of a breakthrough year.