Put next to the global rebound (+46per cent), that can look underwhelming. But the global number is a very distorted benchmark because it is overwhelmingly a US story. Indeed, equity funding in the US grew 66per cent YoY and accounted for roughly 70per cent of the global tally.
So when US mega-rounds accelerate, ‘global funding’ mechanically spikes even if most other regions are growing less. In fact, the ‘rest of the world’ grew +15per cent YoY in 2025. In that context, Africa’s +24per cent YoY is not a lagging indicator. 2025 was a genuinely strong year, comparatively. It beat Europe (+18per cent YoY), LatAm (+17per cent), China (+19per cent) and South East Asia (+18per cent), and it looks even better next to India’s near-flat performance (+1per cent).
So, Yes: Africa remains small in absolute numbers – $2.2billion out of roughly $470billion globally i.e. 0.4per cent of the total -, but in terms of YoY dynamics vs peers (outside the US), the continent’s 2025 performance compares well.
This underrepresentation becomes very real when you compare the continent’s numbers to market or city peers. In 2025, start-ups in Africa raised roughly the same amount of equity as in Sweden (~$2billion) and sits in the same bracket as a single city like Toronto, Canada (~$2.4billion).
Brazil (~$2.6billion) is slightly ahead. KSA (~$1.7billion) and Raleigh, USA (~$1.7billion) are not far behind. In India, one vertical slice – fintech (~$2.4billion) – matches Africa’s continent-wide total.
There’s an upside to being an underdog though: for seasoned investors, that mismatch is an opportunity. The best gains often come from markets not yet mature, where allocation is still thin relative to potential…
