African startups raise $3.9bn in 2025 as funding rebounds – Report
By Aboki Forex —
African startups raised $3.9bn across 506 deals in 2025, signalling a recovery in fundraising activity after earlier market challenges, according to a new report by Bloomwit Africa. Technology funding exceeded $4bn through a combination of equity and debt financing, representing an estimated 25 per cent year-on-year increase.
Venture debt gains ground
Bloomwit Africa, a foremost PR and communications firm, stated in its report that venture debt emerged as a significant source of capital for African startups. The report noted that increasing use of venture debt alongside equity financing is providing startups with additional funding options. This shift is helping founders access capital without diluting ownership as much as traditional equity rounds.
Positive trend carries into 2026
The positive trend extended into 2026, with startup funding reaching $705m in the first quarter, up 26.5 per cent year-on-year. Investment activity spread across key markets, including Egypt, South Africa, Kenya and Nigeria. According to the report, “the improvement in funding reflects growing investor interest in Africa’s technology ecosystem despite global funding pressures that have affected venture capital markets in recent years.”
Investment landscape diversifies
The report added that the wider geographical spread of funding across leading African economies suggests a more diversified investment landscape as investors seek opportunities across the continent. Investment activity continues to broaden beyond a few traditional markets, with more countries attracting capital.
What this means for Nigerian businesses and the naira
Sustained capital inflows into technology startups could support innovation, business expansion, and job creation, while strengthening Africa’s position as an emerging destination for venture investment. For Nigeria, increased startup funding means more dollars entering the economy, which could help ease pressure on the naira and boost the technology sector’s contribution to GDP.