African tech startups raised just US$530 million in the first six months of 2024, down by 56 per cent on the total from the corresponding period in 2023, as investment in the sector continues to feel the effects of the global economic climate.
According to the ninth edition of the African Tech Startups Funding Report, released in January by Disrupt Africa in partnership with Flourish Ventures, AAIC Investment, and Atlantica Ventures, a total of 406 startups raised a combined total of US$2.4 billion over the course of 2023.
These figures meant African tech saw a reset of sorts, as the global capital shortage began to bite. The number of funded ventures was down 35.9 per cent on the 633 that raised in 2022, while the combined total of US$2.4 billion was down 27.8 per cent on the US$3.33 billion raised in 2022.
Any hopes that 2024 would see an uptick in investment were dashed by a disappointing Q1, with funding totalling just US$310 million in the first three months of the year, down 52.3 per cent on the US$650 million raised by startups in the corresponding period of 2023.
These figures have essentially been mirrored when it comes to H1 2024, with funding 117 startups – marginally less than 131 last year – raising US$530,155,000 in funding, down 56 per cent on the corresponding period last year. Q1 2023 and H1 2023 also saw falls of just over 50 per cent, so an annual halving in total investment has now been a trend for two years now.
