Tech companies serving Africa Secured more than $2 billion in funding
In a recent report by Partech Africa, tech companies that provided services on the African continent in 2019 had increased its Venture capital (VC) investments by 74% compared to 2018.
This has totaled more than $2 billion secured in 250 rounds of investment more than the 164 seen in 2018.
According to the Partech report launched on Wednesday, January 30, 2020, 2019 shows the year that broke the record for the most investment in the continent’s tech industry.
The report covers deals in equity around digital spaces and tech, as well as rounds in funding higher than $200 000.
The report includes all tech firms that serviced markets in Africa, even if the firm is based outside the shores of Africa, they were covered in the report in as much as Africa serve as their primary market.
Some of the important discoveries include;
- From the total fund ($1.7-billion), 85% of it went to tech firms in Nigeria, Egypt, Kenya, and South Africa only. With the most deals (52) Kenya netted $564-million in funding, while Nigeria got the highest in funding ($747-million)
- Nigeria and Kenya still leads the race in total funding (205-million), however, South Africa holds the number one spot for the highest number of deals (66)
In 2017, not more than 20 investors made transactions, but 2019 has seen the number increased to 70. They have also made more than one transaction per investor.
- 2018 saw 146 tech firms raised funds to form 164 rounds, in 2019, a total of 234 tech firms raised more than $200,000 from 250 rounds.
These figures from Partech Africa also include both disclosed and undisclosed deals.
The undisclosed deals represented not more than 11% of the total funding in $213 million.
One thing we should be rest assured here is that Africa’s tech industry is rapidly taking speed with investment hovering around it.
This is just a call to African investors to shift their focus and look inwards.
You can get the full report here.
Featured Image: weetracker
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