African health tech funding rose by 5400% in Q2 as global funding declines

Equity funding into African health tech startups witnessed a monumental rise in the second quarter of 2025, as health technology startups across the continent raised $11 million during the quarter. The quarterly total represents an astounding 5400 per cent quarterly increase from the $200,000 raised in the first quarter of 2025.

This is coming at a time when global funding into the health technology sector witnessed a quarterly decline, falling from $5.6 billion in the first quarter to $4.4 billion in Q2. This represents a 21 per cent quarterly decline in global health tech funding.

Per the report by global tech startup analytics and market insights company, CB Insights, this pullback follows a strong Q1 rebound in equity funding, as global economic uncertainty and reduced funding weighed on dealmaking.

While the African health tech scene witnessed a jump in venture funding, the same wasn’t the story across other regions. The Latin American region witnessed the largest decline, falling from the $49 million raised in Q1 to $9 million in Q2, representing an 81.6% quarterly drop.

The rate of decrease was not very different in the Oceania region, where startups raised $37 million in the first quarter, representing an 81.5% drop from the $200 million raised in Q1. The drop wasn’t as steep in Asia, though, as startups raised $200 million during the quarter. This represents a 33.3% drop from the $300 million invested in the previous quarter.

The level of decrease was more pronounced in Europe, where startups raised $500 million, representing a large 66.6% difference from the $1.5 billion raised in the first quarter of 2025.

The United States of America, however, recorded a slight uptick as health tech startups in the country raised $3.6 billion in the second quarter, a 5.5% rise. Canada also witnessed an increase as startups in the country raised $43 million, indicating an impressive 67.4% rise.

Thus, with a 5,400% increase, Africa saw the largest rate of growth globally.

Quarterly health tech deals hit 5-year low

The quarterly decline in global health tech funding wasn’t the most troubling. The number of deals also witnessed a significant decline.

In the second quarter of 2025, a total of 267 health tech funding deals were announced globally. This represents an 18% drop from 325 deals in the previous quarter.

More troubling is the fact that the 267 deals made Q1 the lowest quarter in five years, since 2020, during the pandemic. The number of funding rounds in global health tech recorded slower numbers.

This is also quite ironic as the world was in the middle of a health pandemic in 2020, and one would have expected more deals. But, the pandemic took its toll across all sectors in the venture funding spectrum, and it would only be apropos that the health sector suffered its share.

This, in itself, makes the low number of deals in Q1 quite discouraging.

Across regions, Africa recorded an uptick in the number of deals, recording three funding rounds during the quarter, against the two recorded in the previous quarter. Latin America also witnessed an uptick, with the number of deals doubling from two to four, despite the steep decline in funding. This means more startups are sharing fewer funds.

The Oceania region witnessed a drop in deals, with four rounds accounting for its $37 million raise, against seven rounds distributing $200 million in Q1. The Asian region had 45 deals accounting for $200 million, while in the previous quarter, it was $300 million distributed across 53 deals.

Europe had 57 deals accounting for the $500 million raised in Q2, as against 62 deals accounting for $1.5 billion in Q1.

In the USA, $3.6 billion was distributed across 145 deals, which is an improvement compared with $3.4 billion spread across 166 rounds. Canada has $43 million for 8 deals in Q2 2025, an improvement from the $14 million across 12 deals recorded in the previous quarter.

See also: African health tech startups raised only $200k in Q1, 2025 despite global funding spike