African tech startups raised US$306,367,000 in funding in Q3 2024, taking the total for the first nine months of the year to US$836,522,000, down 40 per cent on the corresponding period in 2023.
According to the ninth edition of the African Tech Startups Funding Report, released in January by Disrupt Africa, 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, and that reset has continued into 2024. Q1 and Q2, and therefore H1, posted declines of just over 50 per cent from the corresponding period in 2023, and Q3 2024 is also down.
The US$306 million raised in Q3 took the running total for 2024 so far to US$836,522,000, down 40 per cent on the corresponding period in 2023, when startups had raised US$1.4 billion by the end of September. That itself had been down 48 per cent on the corresponding period in 2022.
There are signs of recovery, however, with the rate of decline smaller than in the last two quarters, while the year-on-year fall is smaller too.
“Though still not a great quarter in the context of the last few years, Q3 2024 saw signs of improvement within the current funding winter as the decline in investment numbers slowed, both year-on-year and quarter-on-quarter. Big rounds for the likes of NALA, MNT-Halan and Paymob have lightened the general mood, but there were rounds at all stages,” said Tom Jackson, Disrupt Africa co-founder.
“Though clearly the African tech space is in a trough funding-wise, there are perhaps signs of light at the end of the tunnel, particularly with a number of new funds being announced in the last few weeks and months.”
