Updated July 01, 2024

• African tech funding tanks 52% in H1 2024 to $274 million.
• Early-stage ventures hardest hit, seed funding dips 15%, early-stage rounds plummet 70%. There were no late-stage funding rounds in the half.
• Lagos remains the funding leader, attracting 41% of all investments in H1 2024.

African tech startups are facing a reality check in 2024 as a new report by Tracxn reveals a disturbing funding drought in the region in the first half of the year. 

Total funding secured by startups plummeted 52.4% year-over-year to $274 million, a stark contrast to the $576.3 million raised in H2 2023. This decline extends a worrying trend, with funding down a staggering 68% compared to H1 2023's $870.8 million haul.

The funding freeze hit early-stage ventures hardest. Seed funding saw a modest 15% decline to $56.1 million, while early-stage rounds witnessed a steeper 70.9% plunge, securing only $218 million compared to a whopping $750 million in H1 2023.

But it gets even worse! Late-stage funding completely dried up in the first six months, a stark shift from the $67 million and $55 million raised in H2 and H1 2023 respectively as investors seem to tighten their belts.