African Startups Raise $84 Million in February 2024, As Africa-Focused VCs Deploy $579 Million More
February 2024 saw another active month for the African startup ecosystem, with $84.405 million raised by startups across 25 deals according to data compiled by Spectrum Hub. This fundraising comes alongside several Africa-focused venture capital firms launching new funds totaling $579 million to invest in African startups, signaling continued momentum in African tech.
Total Funds Raised by African Startups
In February 2024, African startups from sectors like fintech, logistics, renewable energy, mobility and more raised $84.405 million. While some deals were undisclosed, notable larger raises included mobility startup Roam raising a $24 million Series A, renewable energy startup Hohm Energy securing $8 million, and Nigerian mobility startup Moove bringing in $10 million.
Several smaller seed deals also contributed to the startup funding total, with 12 Nigerian startups raising $120,000 each after participating in an accelerator program run by TechStars. In total, African startups are continuing to attract VC interest across sectors and stages.
Venture Funds Deploying $579 Million Into African Startups
Beyond direct startup funding, several Africa-focused venture capital firms announced new funds in February 2024 that will drive future startup growth. Partech Partners launched its sizeable Partech Africa II fund, securing $300 million to invest in Seed to Series C rounds. Joining them, Cotu Ventures announced closing $54 million for its fund focused on pre-seed and seed stage startups, while Sawari Ventures revealed a $150 million fintech fund.
With Africa-dedicated VC funds now plentiful, startups on the continent are well positioned to receive continuing capital and scaling support. The $579 million raised by just four firms indicates billions more ready to deploy in coming years.
Nigeria Leads Fundraising With 9 Deals Worth $27.11 Million
Analyzing fundraising by country, data showed Nigeria leading across Africa with 9 startup deals totaling $27.11 million during the month. Several of Nigeria’s larger fintech and logistics companies like Moove and Cleva secured funding.
Kenya followed as the second leading destination for capital, with 5 deals worth $35.2 million. Kenya had two of the three largest deals in East Africa during February, with mobility startup Roam bringing in $24 million and renewable energy provider SunKing raising $7 million.
South Africa and Egypt rounded out the top destination countries with one sizable deal each – $8 million for renewable startup Hohm Energy in South Africa, and $4.5 million for fintech MoneyHash in Egypt.
Other African countries that received startup funding in February 2024 included Senegal, Ghana, Tunisia, Morocco, and Zimbabwe. While amounts were smaller, their participation highlights the pan-African scale of the growth in venture capital
Fintech, Logistics and Renewable Energy Draw Investor Interest
Analyzing the data by sector based on deal size, renewable energy led with 3 deals totaling $22.4 million, indicating strong investor appetite for startups addressing energy access and sustainability.
Logistics followed with 2 outsized deals raising $11.55 million, as investors focused on mobility and digital freight companies like Moove. Mobility sector also attracted substantial funding as Kenya Roam was able to raise $24 million to expand its operations.
Fintech rounded out the top 3 funded sectors with 4 deals raising $8.77 million. Though having the most deals, average fintech deal sizes were smaller, with many seed rounds under $1 million.
Top 6 Deals Account for $60 Million in Total Funding
The top 6 deals accounted for over 70% of the startup funding in February 2024, including:
These sizable later stage rounds indicate African startups are continuing to scale, while still attracting small seed investments to develop new ideas.
Most Active Investors Were Y Combinator and Ingressive Capital
The most active startup investors in February 2024 based on deal count were global accelerator Y Combinator and Africa-focused VC Ingressive Capital, each participating in 3 and 2 deals respectively during the month.
Y Combinator supported several fintech companies like Nigeria’s Cleva and Miden as they graduated from the accelerator’s program, while Ingressive Capital co-led healthtech investment Ilara Health’s $4.2 million raise.
As African startups continue maturing, they are partnering with both international and local investors supporting the ecosystem’s development.
February 2024 Funding Shows Maturing African Ecosystem
In summary, the $84 million raised by African startups in February 2024 highlights another solid month of growth, now further boosted by Africa-dedicated VC funds ready to provide additional capital. With the continent’s leading nations and sectors continuing to build a robust pipeline of innovative, high-growth companies, investment into African tech shows no signs of slowing down. Both startups and investors will be closely tracking the ecosystem’s progress in the months ahead.