AFRICA • INVESTMENT & FINANCIAL SERVICES
FEBRUARY 23, 2018
Yet this is slowly changing, with new figures revealing 2017 was the best year yet in terms of funding for African tech startups, with a record number of startups - 159 - raising a new high combined total of funding - US$195 million.This is according to the latest African Tech Startups Funding Report released by tech startup news and research platform Disrupt Africa in January, which finds an increasing number of investors of all kinds from across the globe are spying opportunities in Africa’s tech space.
Unsurprisingly, South Africa, Nigeria, and Kenya accounted for the majority of the funding, with South Africa leading the way in terms of startups with 59, while Nigeria had 30 and Kenya 24. Nigeria did overtake South Africa in terms of total funding raised, though this was primarily accounted for by Andela’s US$40 million round in October.
The amount raised by individual African startups is on the up, too, with 45 companies, including the likes of Flutterwave and Twiga Foods, raising US$1 million or more in 2017, up from 28 the year before.
Interest in funding African tech ventures goes beyond South Africa, Nigeria, and Kenya, however. Indeed, the share of funding secured by the “big three” fell to 74.7%, down from 80.3% in 2016 and 81.7% in 2015. Egypt and Ghana both performed well, with the latter’s total funding increasing by around 150%. Moroccan and Tunisian startups are also attractive to investors, while startups from Uganda, Angola, Zambia, Zimbabwe, Cameroon, Ethiopia, Senegal, Somalia, and South Sudan all raised funding.
In terms of sectors, fintech came out on top for the second year in a row. Fintech startups made up 27 percent of the overall total, raising a total of US$57.7 million. Like many others sectors in Africa, fintech offers investors the chance of having a measurable impact by providing financial services to those previously lacking them, and also the opportunity for significant returns given the major addressable markets.
Other “impact” sectors also performed well. Solar companies, primarily those using mobile money-based pay-as-you-go (PAYG) technology to allow rural Africans to access solar power, were the second most backed, with agri-tech in fourth. Health and education startups also performed well.
Investing in Africa is not just about impact, however. E-commerce had a much better year than in 2016, with total funding growing by 350% to just shy of US$17 million. Logistics, entertainment and marketing startups also attracted funding.
Africa has a long way to go to catch up with the rest of the world when it comes to attracting investment, but the continent is showing positive signs of progress. If this growth can be matched by some more tangible success stories, the future is bright for the continent.
Disrupt Africa has released the third edition of its African Tech Startups Funding Report, which tracks investments into tech startups across the continent and analyses key trends.
The report finds African tech startups raised a record amount of funding in excess of US$195 million in 2017, with the number of startups raising also increasing to 159, making 2017 the best year in fundraising terms since tracking began. More details can be found in this press release.
The report is available here at a cost of US$300, but as a member of the Seedstars World network you can claim a 10% discount using code "seedstars".
Meanwhile, this year, for the first time, Disrupt Africa is also making available the full list of 159 funded tech startups from across Africa, detailing location, sector, investor(s), when funding was secured and, where it is able to disclose, the amount raised. Any funding amounts disclosed confidentially do not appear in the list.
The report plus full list of funded startups is available here at a cost of US$850, but again a 10% discount can be claimed using code "seedstars".
Details of all Disrupt Africa publications, which are also subject to the discount, can be found here.
ASIA • ENERGY & NATURAL RESOURCES
Can Green Startups in Asia Help Mitigate Climate Change?
The Metronome, the famous Manhattan digital clock in Union Square, started the countdown to the next climate disaster.
AFRICA • ECOSYSTEM ENABLER
Designing Virtual Learning Opportunities for Entrepreneurs in Africa [Q&A]
If we say that COVID-19 has changed the world, it would be an understatement. COVID-19 disrupted our world.
AFRICA • EDUCATION & CONSULTING
Can Vocational Training Help the African Economy Soar to New Heights?
When the time comes to make career choices, modern young people suddenly find themselves in a seismically active world, where rock-solid paradigms are cracking, new normals are forming, and opportunities are flowing like lava.
GLOBAL • INVESTMENT
5 Simple Mistakes Start-ups Can Avoid When Measuring KPIs
Despite some fantastic ideas, brilliant products and passionate owners, it’s a sad fact that most start-ups never make it to their third year.
GLOBAL • ECOSYSTEM ENABLER
New Seedstars Index: Efficient Tool for Data-Driven Decision Making
The Seedstars Index (SSI) has been fully reworked for the 2020 edition with the aim of achieving a higher quality predictive indicator for the success of an entrepreneurial ecosystem. Why SSI is a powerful tool for data-driven decision making:
AFRICA • OTHER
Bridging the Gap: How to Prepare Younger Generations to the Future of Work
Access without quality undermines investments in the sector and yields limited gains. Ivory Coast, and the continent more broadly, has witnessed an increase of the school attendance rates
CENTRAL AND EASTERN EUROPE • URBAN DEVELOPMENT
How Switzerland Won Its Title of the Country of Innovation
What makes Switzerland unique? How did the country manage to become the global leader in innovation?
GLOBAL • HR
Being a Better Leader: 5 Skills Founders Have to Learn to Survive Their First Year
It's not all doom and gloom. Founders have to realize that setting up a business is hard, but also that most challenges can be surpassed if tackled with the right mindset and skills.
GLOBAL • URBAN DEVELOPMENT
Civic Tech: Building More Transparent Societies in Developing Countries
Our society is at a tipping point. Consequently, there is an urgent need for developing sustainable economic and social solutions for change. This is where transparency comes in.
AFRICA • AGRICULTURE
Agritech in Africa: Paving The Way For a New Era in Farming
Imagine a drone flying 100 metres over a section of Nigerian farmland, taking infrared pictures that will then tell the farmer if his crops are suffering from a disease – up to 10 days before the damage is visible to the naked eye.
MIDDLE EAST AND NORTH AFRICA • TECHNOLOGY
Overview of the Entrepreneurial Landscape in MENA by Omar Christidis, CEO of Arabnet [Interview]
Recently, we had a chance to talk to Omar Christidis, CEO of Arabnet
ASIA • ENERGY & NATURAL RESOURCES
Fighting Trash: How Myanmar Is Tackling the Waste Problem in the Country?
At the forefront of the Myanmar waste discussion, the historic nation grapples with managing unwanted products like plastic and food
GLOBAL • TECHNOLOGY
Migrant Workers: Four Ideas On How Technology Can Support Skills Mobility
In this article, we will focus on the question of mobility skills, because building the right framework and policies to enable the movement of people is primordial for a sustainable economy and social wellbeing of the world’s population.
AFRICA • TECHNOLOGY
Key Ways to Shape Africa's Tech Startup Sector: Media Perspective
Heyl has also taken an undisclosed share in the company, which was founded in 2010 by the late media entrepreneur Matthew Buckland, who passed away in April.
AFRICA • GOVERNMENT
Delivering Public Services Through Technology and Entrepreneurship
The delivery of public services such as healthcare, education, sanitation and criminal justice, is a key task for any government.
GLOBAL • PROFESSIONAL SERVICES
What Is a Password Manager, and Why Does Your Startup Need One
When you’re running a startup, it goes without saying that you’ve got a lot on your plate: managing your team, updating all your social media channels, responding to user feedback. The list goes on.
GLOBAL • FINANCIAL SERVICES
Fintech and the Future of Your Money
At the intersection of finance and technology lies a phenomenon that has been reshaping the world of money. The rise of the internet has brought about a high degree of disruption to almost all industries and financial services are no exception.
GLOBAL • HEALTHCARE
Digital Health: A Solution to Growing Problems in Healthcare
The Healthtech industry spans a broad number of sub-sectors: hospitals and practitioners; insurance companies; consumer-facing services; pharmaceuticals; and government – to name a few.
LATIN AMERICA • INVESTMENT
Chile — the Leading LATAM Startup Ecosystem
Known for its numerous breathtaking landscapes, wineries, and abundance of copper, Chile is a country that has so much more to offer.
GLOBAL • TECHNOLOGY
Proven Methodologies for Delivering an Interactive Workshop in the Tech Industry
Hosting a workshop at a conference or an event can be strenuous
GLOBAL • ENTERPRISE
How To Make The Most Out Of A Networking Event
Although some entrepreneurs out there attribute their success to luck, savvy startups know that real business opportunity is created through hard work and consistently showing up in the right place at the right time.
CENTRAL AND EASTERN EUROPE • FINANCIAL SERVICES
The FinTech Stars Journey: An Insight on the Three-Month Acceleration Program
Have you ever been to Astana? You would be surprised. Sky-high glass buildings, newly built smart quarters with entrances by a fingerprint scan, huge Expo area - firstly, a venue for the biggest Exposition “Future of Energy”
GLOBAL • MOBILITY
Mega Cities in emerging markets: what are the perspectives on Smart Mobility?
By 2030, almost 60% of the world’s population will live in urban areas. The rapid growth of cities in the developing world, coupled with increasing urban migration, has led to a boom in mega-cities.