Report African 1.43B – A Detailed Look At The African Report Of 1.43B

Introduction

Report African 1.43B – As the African continent gained independence, countries hoped for booming growth and expected rapid changes. It however did not happen. So after the independence, economists, journalists, and researchers started examining the causes of those failures. They have been doing so for over four decades and the situation on the continent does not seem to be much better than it was.

What Is The African Report?

Present African society is a blend of two different realities – a traditional way of life that had been evolving throughout the centuries of its pre-colonial existence. And a modern way of life brought first by the colonization and impacting the continent from the outside more intensely as driven by the globalization process. It is not only a melting pot of several entities, but it is a place where two different lifestyles mix and to some extent clash. Therefore to understand the structure and traits of this society we need to know those two currents that form its foundations.

The Africa Report launched a website in 2019 to gain visibility and become a reference media in Africa. It covers the economic, political, and social news of the continent. With more than one million readers per month. The Africa Report implemented a paywall on its news website in 2021 to complement its quarterly print edition. The Africa Report won the 2006, 2007 and 2012 Diageo Africa Business Reporting Award for Best Media as well as the 2007 award for Best Published Feature.

Report African 1.43B – Report African Startups

An increase in consumer spending in African countries, an increase in the use of digital services in many countries during the COVID-19 pandemic, and an increase in the number of digitally savvy youth with a heightened interest in tech careers. Rather, the challenges of these markets are also seen as an opportunity. Africa still lags behind other regions on key digital indicators such as primary internet usage, meaning there is plenty of room for expansion. He describes all of these factors as “leading to an inflection point.”

Although some African countries have high interest rates and some have been in recession for five years, Africa continues to accumulate significant capital. Vaniru Dada said investment in projects in Africa has increased nearly 18 times over the past six years. Between 2020 and 2021, the fundraising rate of African startups was twice the global average – albeit at a lower level.

The Big Deal revealed that the first half of 2022 was a record-breaking one. With more than $3 billion in funding for African startups raised in the first six months of the year. For comparison, full-year 2021 funding was $4.4 billion.

“The thing is, our valuations in Africa have been crazy and some of these startups have done a good job,” Stone Atwin said. According to the information gathered from the sources, techchrunch.com

Like most markets, there is more early-stage corporate investment in Africa, but Endeavor notes that the disparity is wider in Africa than elsewhere. The fastest growing category in Africa includes deals between $1 million and $5 million, typically in the form of seed rounds or seed financings.

Report African 1.43B – Report African 4.3b

• African startups reportedly set record $4.3 billion to $5 billion in 2021.
• Last year was a record-breaking year for African startups. I know I might sound like a broken record, but astronomical growth is worth stressing over and over again.
• Highlight the driving force behind venture capital growth – which was then set at just over $4 billion. But as in previous years, the total amount raised by African startups varies between different reports.
• We first highlighted this topic in an article published in 2019: Did African Startups Raise $496M, $1B, or $2B in 2019? The differences between the venture financing studies were then clearly apparent.
• When we did another comparison in 2020, the numbers were closer together, with each study reporting between $1.3 billion and $1.5 billion.
• This year, for the sake of consistency, we’ll look at figures from data-tracking publications: Briter Bridges, Partech and The Big Deal, rather than media sources.

How Many Deals And How Many African Startups Did They Collect?

Briter Bridges: African Startups estimates total funding raised is $4.9 billion – $4.65 billion disclosed and approximately $300 million undisclosed. This represents an increase of over 250% compared to last year’s total funding of $1.3 billion. The funding was raised from over 740 deals, which is 25% higher than 2020.

Partech: $5.2 billion from 681 funding rounds, up 264% from $1.4 billion in 2020. The company said it nearly doubled the number of deals, up 92% year-over-year from 359 deals in 2020.

Big Deals: $4.33 billion from 820 deals, up 155% from $1.65 billion in 2020. The number of contracts in 2021 grew 73% year-over-year from 244 deals in 2020.

2020 Partech Africa Report – Report African 1.43B

1 Foreword

As we put this report together, the story of the fastest growing VC market unfolded; Activity increases by almost half, attracting a larger number of unique investors. More and more of them are making repeat, long-term investments in how technology is transforming the industry and creating value.

Yes, the numbers also showed the aftermath of a crisis that has reeled global investors, fueled uncertainty about macro trends and sent bustling African cities to the brink.

In some cases, the slowdown was due to the investor process being disrupted as the founders delayed the round for better times as it became harder to place big bets.

But after months of crisis, it has become clear that the ecosystem is not only resilient, but is also fueled by the accelerated digitization of some important economic sectors.

Even better, we’ve seen a trio of high-profile exits (Paystack, DPO, SendWave) begin to respond positively to issues of value creation and profit for founders and investors. According to the information gathered from the sources, parttechpartners.com

2 Methodology

We report on tech & digital VC justice deals above US$ 200K, in African startups.
Our methodology has persisted unchanged since our fi rst report. Below is the recap of the fundamentals:

1 . Our numbers are about equity deals

This means we exclude everything else: grants, awards, awards, traditional loans, venture loans, loans, Initial Coin Offerings (ICOs), non-equity/technical assistance, post-IPO and M&A deals.

Example: Twiga Foods’ $29.4 million loan from IFC announced in October 2020 is not included.
DFC’s $45 million debt round announced in September 2020 by Lumos Global is also not counted.

2 . Our numbers only include equity funding rounds higher than US$ 200k

These include deals that we classify as late seed-to-growth equity rounds.

Angel deals and smaller seed deals under $200,000 (many on the continent) are voluntarily discarded.
Example: YC’s $120,000 funding round by YC’s loan startup Swipe as part of the W20 stack in March 2019 is not counted.

3 . We focus solely on VC deals that are in the tech & digital spaces

This means that we only count companies whose value is based on digital technology.
Example: In May 2020, the first Series A round of $11.2 million from NextProtein. An insect feed and fertilizer company, did not count.

4 . We only cover African start-ups that we define as companies with their primary market, in terms of operations and/or revenues, in Africa but not based on HQ or incorporation.
When this company evolves to go global, we will still count it as an African company.

3 Findings

We tracked a total of 359 equity rounds raised by 347 startups, compared to 250 rounds by 234 startups last year: representing a 44% year-over-year increase in the number of deals.

that’s awesome. In such a challenging year, more startups have closed rounds than in any previous year. Activities have almost halved. No other region in the world has seen anything like it. Global interest in the African tech ecosystem remains strong even in the context of the global crisis caused by the pandemic.

Partech Africa Report African 1.43b

Today, Partech Africa published its annual report on VC funding for African startups. It appears that, in the midst of a global pandemic, the African tech ecosystem is still growing rapidly. With more deals closing, and a boost from the accelerated digitization of core economic sectors.

More equity rounds in a challenging year

In 2020, more startups closed deals than in any previous year: 359 deals were closed by 347 startups compared to 250 rounds in 2019, i.e., an increase of +44% year-on-year. Another very positive sign is the number of seed deals which accelerated massively, reaching 228 deals (+80% YoY). Venture stage (Series A and B) continues to grow (+11% of deals year-over-year) despite the general erosion of round sizes. The growth stage sees a lower deal count and a significant decline in ticket size (-60% YoY).

Effects Of The Global Crisis

Despite strong growth in activity, the total amount raised by African startups decreased for the first time. After nearly a decade of growth: equity funding raised by African startups in 2020 totaled US$1.429 billion, up year-on-year from – representing a decline of 29%. Another effect of the crisis was a decline in the average deal size of African VC tech equity deals. The absence of mega-rounds largely explains the decline in funding amounts.

The monthly breakdown shows that there was no clear and significant impact. Impact on activity levels due to the crisis, and in fact, each month of 2020 closed more deals than the same month in 2019.

A Flexible Ecosystem That Already Creates Value

Investors may have slowed down their processes, and founders may have delayed their rounds for better times, but the ecosystem is still focused on key economic sectors, such as: Agriculture, Logistics & Mobility, Offgrid Energy, and Health care. has benefited from the increased and accelerated digitization of

Important Facts: Report African 1.43B

Country breakdown: Nigeria continues to lead with investments of US$307 million. while Egypt ranks first in the equity deal count with 86 deals: an increase of +83% year-on-year. 4 countries attracted 80% of the amount invested but overall 26 countries attracted capital.

Sector breakdown: Fintech leads in total equity funding, accounting for 25% of the total amount, but the highlight is the digital transformation of key economic sectors, with Agritech (US$179 million), Logistics & Mobility (US$157 million), Offgridtech (US$179 million), (US$148 million) and Healthtech (US$141 million).

Founder gender breakdown: Female-founded startups raised 13% of rounds in 2020 – down 4 points from 17% in 2019 – but accounted for 14% of total equity funding, up from 13% in 2019 (+8% YoY).

Investor Breakdown: Africa’s tech ecosystem is not only attracting more investors (+24% YoY). But they are also more committed to the market, with 108 of them involved in 2 or more deals.

Conclusion

African tech ecosystems show that while the extraordinary growth in venture capital over the past five years. It has been a fascinating story, it is – if not the most important – one that lies in the untapped potential of the continent’s digital economy. This article is just for informational purpose.