This puts 2025 seven weeks ahead of 2024, when the same milestone wasn’t reached until mid-July.

This is the earliest $1B milestone since 2021, positioning 2025 as a comeback year after a tough global funding environment in 2023–2024.

📈 This marks a 40% increase over the same period in 2024 ($750M).

Deals over $100K were recorded in 20 countries, showing wider capital distribution across the continent.

Sectors Leading the Way (Jan–May 2025)

Africa’s startup funding in 2025 continues to be concentrated around a few high-performing sectors, but we’re also seeing new categories begin to gain meaningful traction.

Note: These figures reflect announced investments over $100K (exc. exits) between January and May 2025. Percentages are approximate and based on a total raised of $1.06B.

Key Insights:

• Fintech continues to dominate, accounting for nearly half of all funding, driven by large raises like Bokra ($59M) and LemFi ($53M).
• HealthTech spiked thanks to hearX’s $100M raise, the continent’s largest deal so far in 2025.
  Proptech is emerging as a serious player, led by Nawy’s $75M deal—the largest ever in the category for Africa.
• Energy and ClimateTech startups are attracting more attention, particularly in solar, battery storage, and grid access.
• Green Tech & AI-powered platforms are experiencing a steady rise, although still underreported in public data.

Six of the top 7 deals in May were from Egypt, highlighting its dominance this year.

Funding Composition

The composition of Africa’s $1.06B in startup funding so far in 2025 reveals more than momentum — it reflects a shift in how capital is being raised.

For many founders, raising capital is no longer just about equity and valuation; it’s about choosing the right mix for scale.

With equity still leading the way, we’re also seeing a growing appetite for venture debt and alternative instruments like bonds, signaling greater investor confidence and a more mature funding environment across key African markets.

Key Observations:

• Equity remains dominant, particularly in early- and growth-stage rounds, underlining investor appetite for long-term plays in sectors like fintech, healthtech, and energy.
• Venture debt is on the rise, representing over 1 in 8 dollars raised — a sign that founders are increasingly open to non-dilutive capital, and that lenders are gaining confidence in Africa’s startup creditworthiness.
• Bond activity is rare but noteworthy — MNT-Halan’s $50M corporate bond issuance in Egypt is the largest of its kind on the continent and hints at capital market maturity in select markets.
• Grant capital, though minimal, continues to play a catalytic role in sectors like climate innovation and social impact ventures.

P.S: While March 2025 saw a temporary dip in deal flow ($50M total), the sharp rebound in April ($343M) and continued strength in May ($254M) suggest that the lull was an anomaly, not a trend.