Startups in Africa announced $56 million in funding in August 2024, down from $443 million in July 2024 ~8x less) and $234 million in August 2023 (~4x less), making August 2024 the second slowest month in four years in terms of funding raised.
The worst month in funding raised over the last 4 years was June 2024 at only $42 million.
Only 27 startups announced funding in August 2024, way below the average established in the last 12 months of 40+.
According to August statistics by The Big Deal:
- The majority of this funding was raised as equity (87%)
- The rest was debt (9%), and
- Grants (4%)
Fido, which operates in Ghana and Uganda, raised the largest deal in August 2024
Among the largest deals in August 2024 were:
- $10 million Series B round by Ghanaian Fintech Fido
- $9 million raise by Solarise Africa, an energy startup from South Africa, to expand renewable energy in the country
- $8 million in funding byNigerian fintech, Waza (YC W23) after coming out of stealth mode
🇳🇬FINTECH AFRICA | #Nigerian Fintech, Waza, Secures $8 Million in Funding After Experiencing 20% Monthly Growth and Processing Over $700 in Business Payments
Waza achieved profitability in the fourth quarter of 2023 and has successfully sustained its profitability into 2024.… pic.twitter.com/ZZs47I6b4N
— BitKE (@BitcoinKE) August 21, 2024
No exits were recorded in the month of August 2024.
The really good performance of the ecosystem in July 2024, according to analysts, put a risk that this might not keep up in August 2024, and in fact, things turned out to be the case.
That said, the funding already announced in Q3 2024 is set to be higher than Q2 2024 and Q1 2024, according to the data.
“2024 keeps tracking below recent years (-40% YoY compared to 2023), but if we care to look on the bright side: despite the August [2024] lull, the ecosystem’s performance was so good in July [2024] that the funding raised in Q3 (with one month still to go) is already higher than in Q1 and Q2 [2024],” notes one funding analyst.
