By Our Correspondents

Copyright independent

A new report by Briter Bridges has indicated that African startups secured more than $2 billion in funding between January and August 2025, even as the number of deals continued to decline

The report, titled “Africa Venture Pulse: State of Investment 2025,” showed that the capital raised in the corresponding period in 2024 was below $2 billion.

Also, the report showed that while the number of disclosed deals dropped below previous highs, investors committed larger sums, pushing the median deal size back to 2022 levels at around $1 million.

Briter reported that the number of deals was above 500 within the reviewed period in 2024, however, it fell slightly below the figure this year.

As per the report, fintech remained the continent’s most funded sector, attracting over $1 billion, while cleantech had its strongest year yet with nearly $950 million, much of it through debt financing.

Other sectors, including healthtech, mobility, and proptech, trailed behind.

By region, East Africa emerged as the top destination for capital, raising about $865 million, closely followed by Southern Africa with $845 million.

North Africa attracted $450 million, while West Africa, once buoyed by Nigeria’s fintech ecosystem, saw its share slip to $420 million.

The report revealed that investors showed a preference for more established companies, which resulted in a decline in early-stage deals worth less than $1 million.

It also highlighted the gender gap in funding, with nearly 90 percent going to male-led ventures and only 10 percent to women founders.

Despite challenges, Briter described 2025 as a rebound year, reversing two years of decline since the 2022 funding bubble.