No end to the funding winter for start-ups in Africa

Economic news

Despite a few encouraging signs, the so-called ‘funding winter’ is still in full swing globally, and Africa is no exception: in Q1 2024, start-ups on the continent have raised a total of US$466m in funding through US$100k+ deals, which represented a 27% drop Quarter-on-Quarter and a -47% fall Year-on-Year. This is the lowest amount raised in a quarter since Q4 2020, i.e. in more than three years. That said, a few signs could be pointing to more positive future trends and a future rebound in Africa: the US/EU rebound in financing rounds, encouraging number of exits in Q1, and the involvement of high-profile global players are likely to have a positive impact on startups’ funding in the continent.

Source: SBF Center for African Studies

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