African Tech Startups Face a Funding Winter: Analyzing the H1 2024 VC Landscape

The first half of 2024 has marked a challenging period for African tech startups, with venture capital (VC) funding hitting its lowest point since H2 2020, ($780 million) representing a 31% decline from the second half of 2023 and an even steeper 57% drop compared to H1 2023.

African Tech Startups Face a Funding Winter: Analyzing the H1 2024 VC Landscape
H1 2024 VC Landscape

The first half of 2024 has marked a challenging period for African tech startups, with venture capital (VC) funding hitting its lowest point since H2 2020. According to a report by Africa the Big Deal, African tech startups managed to raise only $780 million in H1 2024. This stark figure sets a cautious tone for the remainder of the year and highlights several pressing trends and issues within the African startup ecosystem.