Despite the ongoing funding challenges in the African technological landscape, the platform 'Africa: The Big Deal' maintains an optimistic outlook for a resurgence in the near future.

Equity funding mobilized by startups in Africa accounted for less than 1% of all funds raised globally in the first quarter of 2024. This was reported by Africa: The Big Deal, the database that tracks over $100,000 deals captured by African startups, on Tuesday, April 23.

The total funding for these startups was $332 million, compared to the global startup funding of approximately $58.4 billion during the same period. This represents a 47% decrease in funding for Africa compared to the same period in 2023, while a global decrease of 21% was also noted. All regions, except Europe, experienced a decline.

"If we compare Q1 2024 funding to the funding heatwave peak (in late 2021/early 2022), start-ups are currently raising 5x times less quarterly than they were when fundraising peaked in Q3 2021. This is a more serious contraction than the global average (3.1x), which is very much influenced by Europe and US numbers (2.7x). It is in line with the Asian trend though, and much less dramatic than the gap registered in Latin America (14x)," explains Africa: The Big Deal.

Despite the challenging performance of African startups, ‘Africa: The Big Deal’ remains hopeful for the upcoming months. The platform notes: "...We have seen in the past that the trends observed in the US and Europe usually take a couple of quarters before they impact Africa." It anticipates that the recent resurgence of funding in the United States and Europe will eventually ripple through to Africa.

Adoni Conrad Quenum