African startups raised record $4 billion in 2021, a new report says

It was an impressive year for startups in Africa as they raised a total of $4.08 billion worth of investments in 2021, an increase of 438.8 percent from $757.3 million in 2020, a new report shows.

The 2021 Africa Venture capital report published by WeeTracker, a global tech media platform noted that the data shows that Africa houses half of the world’s fastest-developing economies, and is the most entrepreneurial continent on the planet.

“The figures show how the continent’s digital space is, indeed, rising to the occasion, which is: a supposedly sleeping giant finally awakening,” It said in its weekly newsletter.

The report further highlights that 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 2021. 131 Nigerian companies raised venture capital followed by 110 South Africa, 83 Egypt, and 72 for Kenya companies.

Financial services, healthcare, and e-commerce were industries with maximum investment in terms of amount & number of deals among the industries.

“Africa’s technology is striving thanks to investors’ long-term bullishness and their confidence in the investee company founders’ entrepreneurship ability and business models,” analysts at FBNQuest Capital said.

They further added that as the global economy continues to recover Post-Covid-19, technology innovators will be the biggest beneficiaries of new investments. “Business and investors seek digital alternatives to traditional ways of doing business.

But, despite breaking record investments, WeeTracker says African tech companies still have a long way to go as Indian startups raised $4.6 billion in January 2022 alone.

Source: Business Day (Nigeria)

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