In Q2 2025, venture funding in Nigeria showed a sharp decline according to the report by CB Insights. The country's startups raised only $26 million, marking a significant drop compared to previous quarters.
Decline in Venture Funding in Nigeria
The CB Insights report indicated that Nigeria raised only $26 million in equity funding, accounting for 8.7% of the total $300 million raised by African startups in Q2. This represents an 18.75% decrease from the $32 million raised in Q1 and an 81% decrease from the $137 million raised in Q4 2024.
The majority of this funding came from Nigerian startup Arnergy, which raised $18 million in a Series B funding round in April. The second highest was startup Carrot, which secured $4 million.
Leaders in Venture Funding in South Africa
South African startups showed significant growth, raising $96 million in equity funding, which is a 60% increase from Q1. Leading the pack was fintech startup Stitch, which raised $55 million in a Series B round in April.
Comparative Analysis Between Nigeria and Other African Countries
In terms of total funding across Africa, which amounted to $300 million, South Africa contributed 32% of this amount while Nigeria only contributed 8.7%. While 15 Nigerian startups shared just $26 million, the same number in South Africa received $96 million.
The state of venture funding in Nigeria continues to deteriorate, reflecting changes in investor preferences and indicating the need for improvement in the startup ecosystem to attract more capital.
