💰 Is the Tide Turning for African Startup Funding?

If Africa’s startup funding were a TV show, the last two Januarys would’ve been the ‘fall from grace’ season with VCs pulling back, funding drying up, and founders scrambling for cash. But 2025 just delivered a jaw-dropping plot twist: $289 million raised in just one month!

It's a full-blown resurrection. We're talking a 275% leap from last year, catapulting this January into the second-best performance since 2019. As expected, the ‘Big Four’ markets — Nigeria, Kenya, Egypt, and South Africa — continued to lead, attracting nearly 60% of all funds.

But, like any great drama, there’s tension beneath the surface. The number of smaller $100K+ deals has actually dropped, meaning it’s not an across-the-board comeback. Instead, a few high-profile startups landed the biggest checks, driving the total funding up.

So, is this the redemption arc Africa’s tech scene has been waiting for, or just a temporary ratings boost before another dip?

Stay tuned for the next January episode.

– Emmanuel

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