Startups across Africa raised an excess of $195 million worth of investment for the year 2017. Surpassing the investment ceiling startups on the continent have ever raised in history.
That is according to a 2017 Disrupt Africa Tech Startups Funding Report. The report revealed 2017 to have been the best year in history for African startups in search of funding.
Compared to 2016, the total funding into startups on the continent grew by 51% in 2017, and the number of startups that received funding increased by 8.9%. With Nigeria, Kenya, and South Africa taking the lion’s share of the investments for the third year running. In 2017, Nigeria surpassed South Africa in the total amount of investment into startups made in the respective countries, although still, startups in the Southern Africa nation did raise more funding compared to yesteryears.
There is increasing investor interest in startups from developing markets with Ghana, Egypt, and Uganda being fast emerging investment markets on the continent. By far, FinTech space proves to be the most lucrative market for the majority of investors. For the year 2017, 45 FinTech startups got one-third of the total funding received by startups in Africa last year.
E-commerce is also seeing a resurgence in investors’ interests; last year there was a 350% spike in investment totaling more than $16.7 million. Agri-tech sector too recorded impressive investors’ interest; the sector investment in 2017 rose by 203% compared to 2016.
Gabriella Mulligan, the co-founder of Disrupt Africa said: “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 business being built from within Africa. We’re extremely proud to document the story of our incredible ecosystem.”
Her fellow Disrupt Africa co-founder, Tom Jackson, added: “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. It is tremendously exciting to be able to report record investment figures and see funding for African tech startups close on $200 million. With investment also spreading to every corner of the continent, the future looks bright.”