Venture funding for startups in Africa witnessed a significant decline in August 2025, reaching $93 million. This figure marks one of the lowest totals of the current year.
Overall Funding Decline
In August 2025, African startups raised only $93 million, representing an 83% drop compared to the $550 million raised in July. However, this still shows a 66% increase compared to August 2024, when only $56 million was raised. Notably, about 75% of the total $93 million came in the form of equity investments.
Leaders in Investment
The leader in funding raised in August was the Nigerian startup Koolboks, which secured $11 million in a Series A round, combining equity, debt, and grants. Following closely is the Kenyan startup Hewatele with $10.5 million aimed at building a liquid oxygen production facility, and the Egyptian startup Breadfast, which raised $10 million in a Series B funding.
Overall Dynamics and Prospects
Since the beginning of 2025, startups across the continent have already raised over $2 billion, with around $1 billion coming in the form of equity. With the current pace, the annual funding total may exceed $3 billion, marking the first growth after two years of decline.
The decline in funding in August does not raise significant concerns, given that the amount raised still exceeds figures from the previous year. The overall dynamics for 2025 appear to indicate positive trends in the African startup market.
