Key facts about African tech start-ups
By Polycarp Kazaresam
May 19, 2020
According to the 2016 Disrupt Africa African Tech Startups Funding Report, last year saw a 16.8 percent increase in the number of successfully funded start-ups over 2015.
What else do we know about this lucrative African sector? We summarise here:
- South Africa, Nigeria and Kenya remained the three most popular investment destinations on the continent, accounting for 80.3 percent of funding
- Egypt experienced a 105 percent growth in fundraising
- The number of start-ups that raised funding increased from 125 to 146
- Eight Egyptian start-ups raised $9.7 million, compared to $4.7 million last year. This is the largest increase of any country that had over five start-ups secure investment for the year.
- Not surprisingly, fintech was the sector with the most start-ups, followed by e-commerce, e-health, agri-tech, and the recruitment, transport and marketing sectors were tied
- Fintech also gained the most funding. Entertainment followed, then solar, e-health, agri-tech, and marketing.
- Morocco appeared on Disrupt Africa’s list for the first time this year. The North African country raised about $3.4 million, coming in at sixth place.
- While more start-ups found funding last year, the total amount raised fell from 2015, a sign that more early stage startups are finding funding now
- Sources of funding have yet to change much from international sources.