African startup ecosystems show encouraging gender diversity in deal participation, though funding disparities persist as female-founded ventures secure significantly smaller average investments than male-led counterparts.
Analysis of equity deals tracked since 2019 reveals that 25 percent of the 2,808 transactions, totaling over $14 billion in value, involved startups with at least one female co-founder. However, these female co-founded ventures attracted only 17 percent of total funding during this period, indicating they raised 1.5 times less on average than exclusively male-founded companies.
The funding gap becomes more pronounced when examining chief executive officer positions. Only 13 percent of deals involved startups with female CEOs, who claimed just over five percent of total funding. Female CEOs raised 2.5 times less on average compared to their male counterparts, highlighting persistent investment disparities.
Recent trends show concerning developments for gender equity in startup funding. The 2024 figures represent the worst ratios since data tracking began in 2019, with female-led ventures securing 14 percent of deals and three percent of funding. Early 2025 data suggests further deterioration, showing nine percent of deals and 0.9 percent of funding allocated to female-led ventures.
Stage-based analysis reveals the challenges intensify for later-stage funding rounds. While pre-seed investments show relatively balanced participation with 28 percent of deals involving female co-founded startups, representation drops significantly in Series B and C rounds. These later-stage rounds show only 14 percent involvement from female co-founded ventures, securing just 11 percent of total investment.
“The issue is particularly prevalent for later-stage rounds,” according to the Africa: The Big Deal report. “As ventures mature, female co-founded and female-led startups struggle more than others to attract funding, especially large tickets.”
The data challenges common explanations for gender disparities in startup funding. Since 2019, investors have funded over 700 rounds involving female co-founded ventures, averaging two weekly deals and allocating $2.4 billion total investment. Early-stage investors demonstrate capability in building diverse deal flow, though significant improvements remain necessary to achieve gender equity. The analysis suggests missed opportunities exist for later-stage investors to capitalize on the pipeline of female-led ventures established at earlier funding stages.
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