The Disrupt Africa’s African Tech Startups Funding Report 2017 was released today and the results are amazing! Over the course of 2017 investment into African tech startups hit the highest levels since records began, with 159 startups raising in excess of US$195 million.
What’s more, the total funding of African tech ventures grew by 51% compared to 2016, while the number of funded startups also increased by 8.9%. We dug further into the nitty gritty of the report to bring you the inside scoop.
South Africa, Nigeria and Kenya still hold the title for the top three investment destinations for the third year running. For the first time since tracking began, the amount of funding secured by Nigerian startups overtook South Africa in 2017. That being said, significantly more South African ventures raised funding this past year.
In 2017 there was a growing interest in less developed markets also. These top three countries have seen a slight decrease in the total percentage of funding received, declining to 74.7%from 81.7% in 2015. Ghana, Egypt and Uganda are unequivocally emerging as startup investment hotspots and we can’t wait to see what the future holds for them.
Last year was the year for Fintech, which proved by far the most attractive sector for investors. 45 of these startups raised almost one-third of the total funding going to African tech ventures in 2017.
E-commerce is also making a comeback – spiking 350% on the previous year to see startups raise over US$16.7 million. Agri-tech made a mad-dash to the front of the stage, with funding in the sector growing 203% on 2016.
“We’re very excited to present this data on what has been a record-breaking year for African tech startups. More startups were given more funding than ever before, and the number of multi-million dollar rounds also shot up. There can be no clearer validation of the quality of innovation and businesses being built from within Africa. We’re extremely proud to document the story of our incredible ecosystem,” said Gabriella Mulligan, co-founder of Disrupt Africa.
“Through this annual report, which has established itself as the benchmark study of funding for African tech startups, we have been able to closely monitor the growth of the continent’s tech scene,” said Disrupt Africa co-founder Tom Jackson. “It is tremendously exciting to be able to report record investment figures, and see funding for African tech startups close on US$200 million. With investment also spreading to every corner of the continent, the future looks bright.”
If you’d like a copy of the report, you can get it here.
Launched in November 2014, Disrupt Africa is a 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.
For their startup, entrepreneur, and investor friends alike, their mission is to provide practical information and advice from across Africa’s varied vibrant markets, and to promote engaged and thought-provoking discussion about the exciting ecosystem we all belong to.
Want to work in a space designed to help you make connections and get your startup off the ground? Book a tour today to get started.