# African startup money rebounding

> Money for African tech start-ups grew again in 2025, to about $4.1 billion, up 25%, and Kenya, Somalia's East African neighbour, led every country.

Source page: https://calankii.com/en/forces/african-startup-money-rebounding/
Last checked: 2026-11-12
Publisher: Calankii (https://calankii.com)

## The force

After two hard years, investors are putting money into African start-ups again. Partech counted $4.1 billion raised by African tech companies in 2025, up 25%. Equity was $2.4 billion, and loans to start-ups hit a record $1.6 billion, 41% of all capital ([Partech](https://partechpartners.com/news/2025-partech-africa-tech-vc-report-african-tech-funding-rebounds-to-us41b-driven-by-record-debt-activity-and-disciplined-equity-growth)). Kenya ranked first, with $1.04 billion, up 72%. Fintech (money apps) was the biggest sector, at $769 million ([Partech](https://partechpartners.com/news/2025-partech-africa-tech-vc-report-african-tech-funding-rebounds-to-us41b-driven-by-record-debt-activity-and-disciplined-equity-growth)).

Briter, another tracker, counted $3.6 billion across 635 deals, also up 25%. It found that local African investors now supply nearly 40% of the money, up from 25% ([TechCabal](https://techcabal.com/2026/01/26/local-investors-tech-investment/)).

## Sources differ

The two trackers count differently, so 2025 is "$3.6 billion to $4.1 billion". Figures for the first half of 2026 range from $1.44 billion to $3.3 billion, mostly because some count loans and others don't ([TechCabal Insights](https://insights.techcabal.com/?p=1736); [Africa.com](https://africa.com/business/africas-startup-spring-3-3-billion-raised-as-investors-bet-big-on-fewer-winners)).

## Inside the country

Somalia has fewer than 500 start-ups. 53 have raised $47.8 million across 49 rounds. Of 131 companies founded in the last five years, 95 have closed, 5 were bought and 8 were founded by women ([TechCabal](https://techcabal.com/2025/11/18/namaqal-somali-speech-to-text/)). Dealroom lists only a handful of Somali companies at venture stage ([Dealroom](https://dealroom.co/countries/somalia/)).

Support is growing. In August 2026, iRise Hub in Mogadishu, SIMAD iLab and HarHub in Hargeisa launched a national start-up network under an EU-funded, UNIDO-run project. It received more than 3,600 applications, trained about 500 founders and incubated more than 200 start-ups ([MENA Startup Digest](https://menastartupdigest.com/somalia-launches-national-startup-network-with-three-innovation-hubs/)). In 2023 Caafisom, a Hargeisa health start-up, raised a $110,000 seed round, described as Somaliland's first funded start-up ([African Business](https://african.business/2023/07/trade-investment/first-ever-funded-startup-sparks-somaliland-investment-hopes)).

## Why the region matters

Somalia joined the East African Community as its eighth member on 4 March 2024 ([EAC](https://eac.int/press-releases/3049-somalia-finally-joins-eac-as-the-bloc-s-8th-partner-state)). That puts it inside the region that led African start-up funding in 2025.

## What it means for young Somalis

About 500,000 young Somalis enter the job market each year, against about 80,000 new jobs ([MENA Startup Digest](https://menastartupdigest.com/somalia-launches-national-startup-network-with-three-innovation-hubs/)). Start-ups that grow fast create work. The money to grow them is moving again, and it is moving closest to home in Kenya.

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