March 2025 marked a significant downturn in Africa’s startup funding landscape, with startups on the continent raising only $50 million—a stark contrast to the $289 million in January and $119 million in February, according to Africa: The Big Deal.
This downturn makes March one of the slowest months for startup funding since late 2020, during the height of the COVID-19 pandemic. Even more telling, no startup raised over $10 million in March—something that hasn’t happened in years.
One of the few highlights was Enza, a fintech company, which secured $6.75 million in seed funding. The round was co-led by Algebra Ventures and Quona Capital, with support from Network International. Enza plans to expand its team and develop banking solutions across the continent.
Other factors contributing to this slowdown include the closure of 54 Collective’s venture studio operations in Africa, following the end of its funding partnership with the Mastercard Foundation. The studio had been instrumental in accelerating startups across the region.
Despite the gloomy outlook, experts are cautiously hopeful that April might bring a turnaround, though the month is traditionally slow due to holidays.
Read the full story here: