CHART: A Look at African Tech Startup Funding in H1 2024
The landscape hits a speed bump in H1 2024 as funding nosedives.
Updated July 01, 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.