Startup venture funding jumped over 50% in Africa last year to a record high (Infographics)
With African tech hubs, startups and founders starting to mature and gain deeper understanding of local markets after a few years of heady hype that was more about potential than substance, investors increasingly look towards the continent.Partech Ventures’ latest annual funding report shows that venture capital funding in 2017 reached $560 million, recording 53% year on year growth. The scale of growth in funding is seen in the number of investment rounds participated in by startups: in 2017, 124 startups participated in 128 funding rounds compared to 77 rounds in 2016. Partech’s reports include startups that have a primary market in Africa whether or not they are headquartered or incorporated on the continent.
Across sectors, financial inclusion accounted for 45% of total investment—more than any other sector—with $253 million raised. Partech’s report categorizes off-grid tech, fintech and insurance tech startups under financial inclusion. Over the past 18 months, African fintech startups have particularly grown in appeal and reputation with a number of big-ticket deals, most notably a $10 million Series A raise by payments company Flutterwave—one of the largest Series A rounds by an African startup.