The continent of Africa is defying global trends. While the rest of the world shudders in the wake of a pandemic, we have African unicorn start-ups enjoying phenomenal success & brilliant growth.
According to an article in African. Business, the year 2020 saw start-ups around Africa raise a record $4.2 billion, which increased to $4.9 billion in 2021. That’s a record amount given the current rocky global economic conditions.
This is an indication that investors & venture capitalists have realized the immense potential in the African tech start-up industry. Tech firms across the country have grown and matured enough to grab major start-up funding deals.
The Rise of African Tech Start-Up Industry
The following facts are some glimpses of Africa’s prominently rising tech start-up scene:
Prominent tech entrepreneurs across the continent, such as Flutterwave, Chipper Cash, Francophone Tech, OPay, etc., have acquired more than $100 million through several funding rounds. As a result, these start-ups are now the most promising unicorns on the continent.
Africa’s Finance Technology market raked in significant start-up funding in 2021. It accounted for over 41% of major funding deals across all sectors.
Start-up growth and substantial financial deals are no longer the game of just the big four players of the industry : Egypt, South Africa, Kenya & Nigeria. Morocco is the new rising star, grabbing more than $100 million worth of unicorn investments.
Besides fintech, other central business technology domains are attracting significant funding too. For example, go1, an online learning ed-tech platform from South Africa, raised more than $200 million in its Series D funding round and became the first ed-tech venture to gain unicorn status.
Seso Global, a property tech start-up from Nigeria, attained around $600000 in its pre-seed funding stage. The business has since integrated a blockchain database system into its infrastructure, expanded to Ghana & South Africa, and acquired a large clientele.
Investors Swooping In To Support African Tech Unicorns
Start-up growth funding has increased manifold in the continent. Previously, most grants were pouring in from the US or the UK. However, in recent times, this trend has undergone rapid changes.
2022 saw significant investments from local venture capitalists. Investors from venture capital firms, investment groups, as well as established unicorns are extending a helping hand to budding tech ventures.
Numerous angel investors have made their presence known across the continent. There has been a gradual increase in the number of accelerator centers & incubation hubs for African tech start-ups.
Blaq Ventures is a prominent start-up funding firm that provides holistic support to rising tech ventures.
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