Africa got only 0.4% of global equity funding in 2025, despite 24% YoY growth

Despite a 24 per cent growth in 2025 equity funding, Africa still lags terribly behind in the share of global equity funding it commands. This was disclosed in data by the African venture funding analytics company, Africa the Big Deal.

Of the roughly $470 billion generated globally, only $2.2 billion came to the continent, representing 0.4 per cent of the total.

Indeed, the continent’s total is so minute in the larger global context that it could only be compared with smaller countries and even cities within major countries. For instance, Brazil boasts a larger share of the global total with $2.6 billion.

However, Sweden, with around $2 billion raised in equity, enjoys the same percentage share.

The Kingdom of Saudi Arabia isn’t far behind with $1.7 billion raised in 2025.

A city like Toronto in Canada attracted more equity funding than the entire African continent, with $2.4 billion raised. Another city, like Raleigh in North Carolina, USA, is not far behind, attracting $1.7 billion in equity funding.

Perhaps the most damning evidence of Africa’s underrepresentation is that in India, the Fintech sector alone outperformed the entire African continent, amassing $2.4 billion.

However, it is not all gloom, according to the report, as this outcome only reflects that the African market is yet to mature. As such, there are huge investment opportunities which suggest an investor’s haven.

“There’s an upside to being an underdog, though: for seasoned investors, that mismatch is an opportunity. The best gains often come from markets not yet mature, where allocation is still thin relative to potential,” the report noted.

See also: Venture funding: How African startups raised $3.2bn in 2025

Africa beats Europe and China in equity funding growth

Despite being the least funded region in the world, Africa has nonetheless emerged as the region with one of the highest growth rates in equity funding in 2025, after recording a 24 per cent year-on-year growth.

Africa’s 24 per cent means it trumps the entire European continent, which recorded an 18 per cent growth. It also performed better than the Latin America region, which recorded a 17 per cent growth rate, and South East Asia with 18 per cent.

Indeed, in equity funding growth, Africa is second only to the USA, which boasts an overwhelming 66 per cent. Compared to other major economies of the world, Africa recorded a better growth rate than China (19 per cent) and India (1 per cent).

While the continent’s rate is still lower than the global average of 46 per cent, it is important to note that the global average is buoyed mostly by the US, which contributed 70 per cent to the global average. Removing the US from that mix, the global average slumps to 15 per cent, way lower than Africa’s 24 per cent.

“Africa remains small in absolute numbers, but in terms of year-on-year dynamics vs peers (outside the US), the continent’s 2025 performance compares well,” the report states.

The absolute numbers are not great. However, founders on the continent need to continue on their steady trajectory, emphasise technical skills training, build real solutions to the real problems around the continent, and the investors would come calling.

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