African startups managed to raise a total of $1 billion in the first five months of this year.
This amount stands out as 40% higher compared to the same period last year. Last year was not a good one for African startups in terms of funding, so an increase in investment was expected this year.
The year began with strong momentum, as $289 million was raised in January. However, the pace of funding declined in the following months. In February, startups raised $119 million, and in March, investment dropped to $50 million — the lowest monthly amount recorded so far this year.
Despite this dip, April saw a rebound with a total of $343 million raised, signaling a potential recovery in investor confidence. The momentum continued into May, which brought in $254 million in funding.
Surpassing the $1 billion mark by the end of May paints a promising picture for Africa’s tech ecosystem. If the trend continues, this number could grow significantly by the end of the year.