African Startups Seek Domestic Funding as $259 Billion AI Boom Pulls VC to US

3 articles · Updated · Bloomberg · Jun 3

African startups are shifting fundraising toward domestic capital pools, including development-finance institutions, pension funds, debt providers and local venture firms.
AI-related venture investment doubled to $259 billion in 2025 from 2023 levels, drawing global capital toward the sector and away from emerging markets.
US companies captured about three-quarters of that AI funding, leaving African founders competing harder for scarce international venture money.
The pivot marks a broader rewrite of startup financing across Africa as founders rely more on local and regional backers to keep deals moving.

Sources

Left100%

Is the pivot to local capital a temporary fix or the birth of a self-sufficient African tech ecosystem?

Can Africa’s informal savings systems be the key to funding its next generation of tech giants?

As African startups embrace debt, are they sacrificing disruptive innovation for short-term survival?