‘AUGUST 2024: THE SECOND SLOWEST IN FOUR YEARS 💲’ – African Startup Funding Analytics

💥 In August 2024, there was a major slump in funding in the African startup ecosystem. The startups on the continent were only able to raise $56 million in the month. According to the African startup funding analytics company, August’s funding represents the second-slowest month since funding recording began in 2020.

The $56 million raised in August is a huge 87 per cent decline from the $443 million raised in July, 2024. In fact, compared to the $234 million raised in August 2023, last month’s funding represents a 76 per cent decline.

According to the report, “When we covered the really good performance of the ecosystem in July last month, we knew there was a risk that it might not keep up in August. And in fact, things have been much slower last month: start-ups in Africa announced only $56m in funding, down from $443m in July (~8x less) and $234m in August 2023 (~4x less), making August 2024 the second-slowest month in four years in terms of funding raised, after June 2024 ($42m)”.

Of the 27 startups that announced funding in August, the three largest deals were recorded by Ghanaian fintech, Fido; South African green energy startup, Solarise; and Nigerian fintech, Waza (YC W23).

LOOKING ON THE BRIGHT SIDE

Despite the slowdown of funding last month, the ecosystem’s performance was so good in July that the funding raised in the third quarter is already higher than in the first and second quarters with one month still to go. Yes, VC-funding in 2024 crossed the $1 billion mark in early July, way earlier than expected.

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AfriRadar