The year 2024 marked an abysmal year for female-led and female-founded ventures in African start-up funding, with representation hitting an all-time low since 2019.
Report by Africa: The Big Deal, revealed that female CEOs received just $48 million in funding in 2024 (excluding exits), a staggering decline of more than 75% compared to 2023. This amount represents only 2% of the total $2.2 billion invested in African start-ups last year, with male CEOs attracting the overwhelming majority. In absolute terms, this marks the lowest funding level for female CEOs since 2020.
The representation of female CEOs among top-funded start-ups has also declined further. In an analysis in September last year, the report disclosed that only four of the 100 most-funded start-ups in Africa since 2019 currently had a female CEO. Since the resignation of Kobo360’s Cikü Mugambi in November, the number is now down to three.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Gender-Diverse and Female-Only Founding Teams Struggle
The funding landscape for female-founded and gender-diverse teams is equally dire.
Solo Female or All-Female Founding Teams: Raised only $21 million in 2024, accounting for a mere 1% of total funding.
Gender-Diverse Founding Teams: Secured $123 million, representing just 5.5% of the total.
Solo Male or All-Male Founding Teams: Dominated funding, raising $430 million and $1.6 billion, respectively, or 95.5% of total investment.
In stark contrast, start-ups with at least one female founder received only 6.5% of total funding, compared to 99% for ventures with at least one male founder. This statistics according to The Big Deal, have never seen so poor since it started tracking the data in 2019.
The Broader Implications
These figures reflect a persistent gender gap that not only marginalizes female entrepreneurs but also stifles the potential for diverse perspectives in leadership and innovation. Startups with women founders are a driving force behind innovation and inclusive growth in Africa. Research shows that they are better bets for investors, generate higher revenues for the businesses they start, start businesses in high impact sectors like health and education and create more jobs, particularly for other women. The decline in funding for female-led ventures suggests that progress in gender equity has stalled, if not regressed, despite growing recognition of the value of diversity in driving business success.
2024’s poor statistics highlight the urgent need for systemic change in the African start-up ecosystem. Stakeholders, investors, accelerators, and policymakers must actively work to identify and eliminate barriers for female entrepreneurs. Concrete steps such as implementing diversity-focused investment mandates, fostering mentorship opportunities, and promoting gender inclusivity in decision-making processes are essential for creating a more equitable future.
Conclusion
The severe underrepresentation of female CEOs and founders in African start-up funding during 2024 is a wake-up call. The statistics paint a disheartening picture of gender disparity, underscoring the urgent need for action to promote inclusivity in the ecosystem.
Achieving gender equity in the start-up ecosystem is not just a moral imperative, it is a critical driver of innovation and economic growth.