Q3 2025 Funding Landscape
Equity funding into the African artificial intelligence space does not appear to be reflecting its growing popularity, as AI startups on the continent were only able to attract $14 million in the third quarter of 2025. This is according to data gleaned from the global tech startup analytics company, CB Insights.
The $14 million raised by startups around the continent represents a paltry 0.03 per cent of the total $47.8 billion raised by AI startups globally. It also positions Africa as the least funded AI destination in the world.
Speaking about the world, the USA remains the Big Brother, contributing $38.8 billion across 652 deals, representing 81.2 per cent of the haul. While this is impressive, it, however, falls slightly below the $39.7 billion across 728 deals attracted in the previous quarter, a 2.2 per cent drop.
Global AI Funding Distribution
Europe is the next most-preferred destination, with AI startups across the continent responsible for $5.4 billion across 279 deals and representing 11.3 per cent of the quarterly total. This stands as an impressive 22.7 per cent improvement from the previous quarter, when $4.4 billion was raised. Europe also saw its share of the global total increase from 9.3 per cent in Q2.
The Asian region proved to be another powerhouse and one of three regions which recorded a billion dollars or more in quarterly funding. The region recorded $2.9 billion across 297 deals, an impressive 38 per cent increase from the $2.1 billion raised across 300 deals in the last quarter. The Asian haul represents 6 per cent of the global total, a significant increase in share from the 4.4 per cent raised last quarter.
Next is Canada, where AI startups raised $400 million across 21 funding rounds. This represents 0.8 per cent of the global total, a significant share drop from the 1.47 per cent recorded in the last quarter. The Canadian quarterly raise also represents a stall, falling from $700 million in Q2, a significant 42.85 per cent drop.
The Latin America region saw a significant 100 per cent rise in quarterly funding, jumping from $50 million in Q2 to $100 million in the third quarter. The total, raised across 19 deals, represents 0.2 per cent of the global total, an improvement from the 0.1 per cent share recorded in the previous quarter.
The Oceania region recorded the largest slump of the quarter, dropping from the $300 million raised across 12 deals in Q2 to $93 million in Q3, a significant 69 per cent drop. The $93 million represents a share of 0.2 per cent of the global total, a drop from the 0.6 per cent it claimed last quarter.
2025 Global AI Startup Funding Surpasses 2024’s After 9 Months
This is coming at a time when funding into artificial intelligence companies around the world is witnessing a massive boom. In the quarter under review, AI startups across the world raised a combined $47.8 billion across 1,295 deals. This represents a slight 1.8 per cent decrease from the $48.7 billion raised in the previous quarter (Q2). Indeed, the third quarter, despite being the third most-funded quarter of all time, is the slowest quarter of 2025, with Q1 seeing a total of $62.4 billion poured into artificial intelligence solutions across the globe in 1,516 deals.
So far, a total of $158.9 billion across 4,480 deals has been raised across the globe in just nine months of 2025. This means 2025 has already surpassed 2024, when startups raised $108 billion, establishing a 47.4 per cent difference. It is also imperative to note that the number of deals declined in 2025 as investors would rather invest heavily in fewer startups than spread the funds further across. Essentially, fewer AI startups are getting more funding. How this would disrupt the AI funding landscape is to be seen.