African start-up funding rebounds, shifts to debt

African start-up funding rebounds in 2025, but a surge in venture debt signals investor caution and growing pressure on founders.

Photo credit: Pool

The first half of 2025 has been kinder to African start-ups compared to the same period last year, with firms gaining increased access to funding from global investors.

But a growing shift toward debt financing signals a more cautious approach to backing the continent’s budding ventures.