US and European Investors Dominate African Startup Funding Activity for January
Editorial Team
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The African startup ecosystem kicked off 2025 with a strong showing, raising over $216 million in funding from global investors during January, according to data compiled by Launch Base Africa from investment activity in tech startups across the continent. While the figures reflect growing confidence in Africa’s entrepreneurial ecosystem, the funding landscape remains heavily influenced by foreign investors, particularly from the United States and Europe, who accounted for nearly 70% of the total investment activity.
The data reveals a clear trend: US and European investors continue to dominate Africa’s startup funding scene, highlighting their pivotal role in shaping the continent’s emerging markets. Meanwhile, African investors are gradually increasing their participation, contributing 20.7% of the total activity, with South Africa, Kenya, and Morocco leading the charge.
Investment Breakdown by Region
1. North America: 31.7% of Total Activity
The United States emerged as the largest source of funding for African startups in January, with over 20 investors participating in deals worth over, at least, $68 million. Notable US-based investors included:
Bill & Melinda Gates Foundation: Focused on health and development-focused startups.
U.S. International Development Finance Corporation (DFC): A key player in infrastructure and fintech investments.
Y Combinator and Plug and Play: Active in supporting early-stage tech startups.
Visa: Continued its focus on fintech innovation across the continent.
Canada also made its mark, with BKR Capital and Globalive participating in funding rounds. The US remains a dominant investor in African startups, particularly in fintech and impact investing.
2. Europe: 35.4% of Total Activity
European investors accounted for the largest share of funding activity, with 29 investors contributing over 35% to the total funding activity. The United Kingdom led the region, with prominent names such as:
British International Investment (BII): A major player in infrastructure and renewable energy projects.
Giant Ventures and firstminute capital: Focused on high-growth tech startups.
Helios Digital Ventures: Investing in digital transformation across Africa.
European investors, particularly DFIs (Development Finance Institutions) and impact VCs, are strong backers of African startups, especially in sustainability, insurance, and fintech.
3. Africa: 20.7% of Total Activity
African investors are increasingly stepping up, contributing over 20.7% to the continent’s startup ecosystem in the first month of 2025. South Africa dominated this category, with more than 10 investors actively participating. Key players included:
HAVAÍC and Africa Capitalworks (ACW): Focused on early-stage tech startups.
Hollard and Yellowwoods: Investing in insurtech and financial services.
E Squared and Jozi Angels: Supporting innovative ventures in Johannesburg’s thriving tech hub.
African investors, particularly from South Africa, Morocco, and pan-African funds, are more active in early-stage investments.
4. Asia: 7.3% of Total Activity
Asian investors contributed approximately 7% to the total funding deals in the African startup ecosystem in January, with Japan and South Korea leading the way. Notable participants included:
Hyperithm and Emurgo Kepple Ventures (Japan): Focused on blockchain and fintech solutions.
DeSpread and Core Ventures (South Korea): Investing in scalable tech startups.
Vikram Chopra (Cars24): The Indian entrepreneur’s involvement highlighted growing interest from South Asia.
While Asian investors are still a minority, Singapore and Japan-based firms are showing interest in African fintech and blockchain startups.
5. Middle East: 4.9% of Total Activity
The Middle East’s contribution, though smaller, is steadily growing. Investors from the UAE, Saudi Arabia, and Jordan participated in deals representing about 5% of the entire deals counts. Key players included:
Plus VC and COTU Ventures (UAE): Focused on fintech and e-commerce.
Arab Bank’s Xelerate (Jordan): Investing in innovative financial services.
Gulf investors (Saudi Arabia, UAE, Jordan) are increasing their footprint in African fintech and payments infrastructure.
Sector Focus of Investors
Fintech Dominance: A significant number of investments are in fintech startups, including NjiaPay, Accrue, MoneyHash, SeamlessHR, LEMFI, Moniepoint, and CreditCheck. These investments come from venture capital firms focused on Africa and emerging markets, such as Lattice Fund, Helios Digital Ventures, and Baobab Network.
Renewable Energy & Cleantech: Notable investments in PowerGen Renewable Energy, Spouts International, Sistema.bio, and Mopo indicate a strong interest in climate tech and sustainable solutions, with backing from Norfund, IFU, Novastar Ventures, and British International Investment (BII).
EdTech & Healthcare: Enko Education ($24M) and Ilara Health ($1M) show the interest in education and healthcare investments, led by Africa Capitalworks and the U.S. International Development Finance Corporation (DFC).
E-commerce & Consumer Goods: Kapu and FARO Africa secured funding from a mix of traditional VCs and prominent angel investors, suggesting rising interest in African digital commerce.
Key Takeaways
Foreign Dominance: US and European investors accounted for 67.1% of total funding activity, highlighting their outsized influence on Africa’s startup ecosystem.
Growing Intra-African Investment: African investors contributed 20.7%, signaling a shift toward greater local participation in funding.
Sectoral Opportunities: Fintech, renewable energy, and healthcare remain the most attractive sectors for investors.
Regional Hubs: South Africa, Kenya, and Morocco are emerging as key investment hubs, driving innovation and entrepreneurship across the continent.
The Bottom Line
While the strong presence of foreign investors in the African startup ecosystem underscores the continent’s potential as a global investment destination, experts emphasize the need for greater local participation to ensure sustainable growth.
As the continent’s startup ecosystem continues to mature, 2025 is poised to be a pivotal year for African innovation, with investors from across the globe vying for a stake in its untapped potential.
E3 Capital, Fireball Capital, Atlantic Bridge, Globalive, JLR Star
Enko Education
$24M
Africa Capitalworks (ACW), Adiwale Fund I
MoneyHash
$5.2M
Flourish Ventures, Vision Ventures (Saudi Arabia), Arab Bank’s Xelerate, Emurgo Kepple Ventures, Jason Gardner (Marqeta founder), Tom Preston-Werner (GitHub founder), COTU Ventures
Sevi
Undisclosed
Renew Capital
Naked Insurance
Undisclosed
BlueOrchard, Hollard, Yellowwoods, IFC, DEG
SeamlessHR
$9M
Helios Digital Ventures, Bill & Melinda Gates Foundation
CreditCheck
Undisclosed
Baobab Network
FARO Africa
$6M
JP Zammitt (Bloomberg), Presight Capital, Garage Ventures, Angel Investors (Mato Perić, Leonard Stiegeler, Oliver Merkel, Vikram Chopra, Tushar Ahluwalia)
Ilara Health
$1M
U.S. International Development Finance Corporation (DFC)
Washminute
Undisclosed
Witamax, Tamwilcom, Near East Foundation, Angel Investor (Moroccan sports sector)
Conservio
$1M
E4E Africa, Volve Capital, Living Hope Ventures, Jonathan Smith
TACO
$1.6M
NEXT176, Holocene, Catalyst Fund, E Squared, Aions, Jozi Angels
LEMFI
$53M
Highland Europe, Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, Y Combinator
Moniepoint
$10M
Visa
Crossboundary Energy
$40M
Norfund
Spouts International
Undisclosed
Dob Equity
Sistema.bio
$3M
Novastar Ventures
PowerGen Renewable Energy
$15M
Investment Fund for Developing Countries (IFU)
Simplex
$13M
Undisclosed Investors
Purple Africa Ventures
$4.5M
Clear Creek Investment B.V., Fede Pirzo-Biroli (Playfair Capital), Ian McCaig (Lastminute.com)
Continent
Country
Investors
Africa
South Africa
HAVAÍC, Africa Capitalworks (ACW), Hollard, Yellowwoods, E4E Africa, NEXT176, E Squared, Jozi Angels, Verdant Capital Hybrid Fund, Fireball Capital, Holocene
Morocco
Witamax, Tamwilcom
Kenya
Renew Capital, Novastar Ventures, E3 Capital
Nigeria/Kenya
Baobab Network
Egypt
DisrupTech Ventures
Asia
South Korea
DeSpread, Core Ventures
Japan
Hyperithm, Emurgo Kepple Ventures
India
Vikram Chopra (Cars24)
Taiwan/Singapore
Orbit Startups
Europe
United Kingdom
British International Investment (BII), Giant Ventures, firstminute capital, Helios Digital Ventures, JLR Star, Fede Pirzo-Biroli (Playfair Capital), Ian McCaig (Lastminute.com), Highland Europe, Adiwale Fund I
Netherlands
Yabx Technologies B.V., Maven 11, Dob Equity
Sweden
Norrsken VC, Anyfin
Ireland
Atlantic Bridge
Germany
Banxware, DEG, Leonard Stiegeler (Pulse), Oliver Merkel (Flink), Tushar Ahluwalia (Razor Group)
Switzerland
BlueOrchard
Norway
Norfund
Denmark
The Investment Fund for Developing Countries (IFU)
Croatia
Mato Perić (MPGI)
North America
United States
Rally Cap, Plug and Play, Flourish Ventures, Lava, Kraynos Capital, Distributed Capital, BlackWood, Founder Collective, Core Ventures, Jason Gardner, Tom Preston-Werner (GitHub founder), Bill & Melinda Gates Foundation, International Finance Corporation (IFC), U.S. International Development Finance Corporation (DFC), Visa, Catalyst Fund, Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, Y Combinator, Lattice Fund, Clear Creek Investment B.V., Presight Capital, Jedar Capital
Canada
BKR Capital, Globalive
Middle East
UAE
Plus VC, COTU Ventures
Saudi Arabia
Vision Ventures
Jordan
Arab Bank’s Xelerate
Summary by Continent
Africa: South Africa, Morocco, Kenya, Nigeria, Ethiopia, Egypt.
Asia: South Korea, Japan, India, Taiwan, Singapore.
