African Startups See 40% Increase in Funding in May 2024
A Positive Month for African Startups
May 2024 has been a positive month for African startups, with a 40% increase in funding compared to the previous month, according to the latest figures from Africa: The Big Deal. The total amount of funding raised reached $187 million.
64 Startups Raise Over $100,000 Each
64 startups managed to raise more than $100,000 each, with 17 of them securing over $1 million in funding.
Year-to-Date Funding Reaches $729 Million
Since the beginning of the year, a total of $729 million has been raised in funding, a figure that remains lower than previous periods: $1.7 billion from January to May 2023, $2.7 billion from January to May 2022, and $1.1 billion from January to May 2021. In 2024, 90 companies have raised around $1 million each, compared to 95 companies that achieved a similar level during the same period in 2023. However, 2022 still leads the way, with over 200 companies raising more than $1 million.
Climate-Related Startups Dominate Funding
Startups operating in climate-related fields dominated the funding figures in 2024, representing 44% of the total funding. Debt financing accounted for 35% of the total amount, a slight decrease from the same period last year, which stood at 38%.
Successful Exits in May 2024
Three startups achieved successful exits in May 2024. These include Adumo, a payment platform from South Africa, acquired by Nasdaq-listed Lesaka Technologies for $85 million, as well as Brass (Nigeria) and Ratality (South Africa).
Industry Still Recovering
The industry is still recovering, but the signs are encouraging. The focus remains on profitability and profitability, with growth no longer being the only argument presented during a roadshow.