Half of Africa’s Biggest ‘Startup Rounds’ in 2025 Were Actually Bank Loans
- African tech funding crossed $3 billion in 2025, a 36% increase from 2024.
- Five of the top ten largest capital raises in 2025 were not equity investments but debt facilities and structured finance.
- Sun King secured $156 million through the first majority commercial-bank-backed securitization in Sub-Saharan Africa.
The increase in African tech funding is a positive development, but the reliance on debt and structured finance rather than equity raises questions about the accessibility of venture capital for early-stage startups. This trend could lead to a two-tiered ecosystem where only established companies benefit from available capital, leaving many innovative startups struggling to secure necessary funding.
