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Disrupt Africa Report // African Tech Startups Funding Passes US$2 Billion Mark
African tech startup ecosystem trebled over the course of a record-breaking 2021 that saw total funding pass the US$2 billion mark for the first time.
This is according to the seventh edition of the annual African Tech Startups Funding Report released by startup news and research portal Disrupt Africa, which is available free to all as part of an open-sourcing initiative in partnership with Novastar Ventures, MFS Africa, Quona Capital, 4Di Capital, MEST Africa and Future Africa.
The report that was availed on 28th January, tells the story of an extraordinary 2021 in which more startups raised more funding than ever before, by quite some way. In all, 564 startups raised a combined US$2,148,517,500 in 2021.
This represented incredible growth. The number of funded startups grew by 42.1 per cent on 397 in 2020, and the funding total was more than treble – up 206.3 per cent – the US$701,460,565 banked the previous year.
In all, the number of African startups securing investment has increased by 351.2 per cent since 2015. Though growth had slowed a little in 2020, partly due to the impact of the COVID-19 pandemic, investors doubled down in 2021, with the number of different investors increasing by more than 100 per cent to 771 from 370 the previous year.
Nigeria, Egypt, South Africa and Kenya remain Africa’s “big four” from a funding perspective, securing a greater share of total funding between them than in 2020, yet Nigeria soared past all other countries to take top spot, with 161 startups raising a huge combined total of more than US$900 million.
Though Nigeria and the rest of the “big four” remain clear leaders, there is still plenty of activity elsewhere on the continent, with startups backed in 24 African countries.
The fintech sector was, yet again, the most attractive to investors in 2020, with more startups securing funding than any other sector and a combined total that dwarfed all others. The sector broke the US$1 billion funding barrier, something the African tech space as a whole only managed for the first time in 2021, with fintech accounting for almost half of total investment.
Other sectors also had impressive years – notably e-commerce and retail-tech, e-health, logistics, ed-tech, energy, agri-tech and transport.
Startup Funding // 5 Things Investors Look for Before Investing
The report is available for free download here. Aside from providing a full list of the funded startups, who invested in them, and, where possible, the amount raised, from the previous year, the annual reports also provide deep-dives into investment trends within key startup geographies and verticals, as well as data on African startup acquisitions.
Previously available for sale, the African Tech Startups Funding Report was until the last edition purchased each year by leading tech companies from Africa and the rest of the world, Big Four consulting firms, banking and fintech leaders, venture capital firms, supranational investors and international trade bodies.
Now, however, Disrupt Africa releases the publication for free, making it accessible to those for whom the information is most valuable – African entrepreneurs.
This year it is doing this with the help of partners Novastar Ventures, MFS Africa, Quona Capital, 4Di Capital, MEST Africa and Future Africa, with whose support Disrupt Africa will be distributing the African Tech Startups Funding Report 2021 to as many ecosystem stakeholders as possible.
Disrupt Africa is the one-stop-shop for all news, information and commentary pertaining to the continent’s tech startup – and investment – ecosystem.
With journalists roaming the continent to find, meet, and interview the most innovative and disruptive tech startups, Disrupt Africa is a true showcase of Africa’s most promising businesses and business ideas. Its research arm releases in-depth reports on various aspects of the African tech startup ecosystem. You can access the report here.
