According to the third annual report released by Partech Ventures, a leading international venture capital firm, the total amount of funds raised by African tech startups last year stood at US$ 366.86 million representing a more than 30% increase from the previous year that raised a total of $276.5 million.
According to the report, the money ($366.86 Million) was raised by 77 startups from 12 African countries Nigeria, South Africa, Kenya, Rwanda, Cote Ivoire, Tanzania, Egypt, Ghana, Senegal, Morocco, Tunisia, and finally Uganda.
In terms of total funds raised, the report recognized only the top three, Nigerian startups led the way with $109 million, South Africa following closely with $96 million, and Kenyan startups raised $92 million. These top 3 investment destinations accounted for 79.4% of the continent’s total funding.
Whereas in terms of deals, South Africa saw the highest number of deals with 28 transactions, followed by Kenya with 21, and Nigeria with 13.
As per sectors, the report stated three (3) sectors; Off-Grid Tech, FinTech, and E/M/S-Commerce attracted 72% of the total investment with Financial Inclusion accounting for 56.2% – $206.3 million across 28 transactions of Africa’s VC investment.
Online & Mobile Consumer Services accounted for 40.5% (US$ 148.5 million across 36 transactions) of the total investments while Tech Adoption stood at 3.3% (US$ 12 million across 13 transactions).
The findings were based on market research, publicly available data and Partech’s trusted relationships within the technology ecosystem in Africa, and it’s quite incredible considering certain types of deals and startups weren’t considered.
source: Partech Ventures