African startups secured $3.9 billion through 506 investment deals in 2025, reflecting a strong rebound in fundraising across the continent, according to a new report by Bloomwit Africa.
The report showed that total technology funding surpassed $4 billion when equity and debt financing were combined, representing an estimated 25 per cent year-on-year increase. It noted that venture debt has become an increasingly important source of financing for startups.
Bloomwit Africa, a public relations and communications firm, said the recovery has continued into 2026, with startups raising $705 million in the first quarter of the year, marking a 26.5 per cent increase compared to the same period last year.
According to the report, investment activity remained concentrated in major innovation hubs, including Egypt, South Africa, Kenya and Nigeria, while funding also expanded into more markets across the continent.
The report attributed the improved performance to renewed investor confidence in Africa's technology ecosystem despite persistent global challenges affecting venture capital funding.
It added that the growing adoption of venture debt alongside equity investments is providing startups with more financing options, while the broader distribution of investments across African economies points to a more diversified venture capital landscape.
Bloomwit Africa said continued capital inflows into the sector are expected to drive innovation, business growth and job creation, further positioning Africa as an attractive destination for technology investment.
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