With 2023 now behind us, we look back on a year marked by strong economic headwinds and market upheavals. A cursory look at funding numbers shows that 2023 was a mixed bag. Venture capital (VC) funding fell by 41.7%, quarter-on-quarter, going from $916m in Q2 to $499m in Q3.
In 2022, funding raised by African startups peaked at $5bn. As of November 30, 2023, this figure stood at $3.246bn, which, so far, shows a stark 36% dropoff from last year, highlighting the difficulty investors faced in raising funds in 2023. The number of $1m+ equity deals also waned significantly from a high of 125 in Q1 2021 to 42 in Q3 2023.
Despite the low numbers, 2023 had some positives. Notably, a new African unicorn emerged in the shape of MNT-Halan, the Egyptian fintech startup. Firms like Partech—via its Africa II fund—and M-Kopa raised money above their expectations, exceeding $250m each. Flutterwave made strides towards its goal of an initial public offering (IPO) after being cleared of financial misconduct in Kenya, and Nigeria’s central bank shifted its posture on crypto to adopt a crypto-friendly policy stance. So, what trends should we look out for heading…
Stephen Agwaibor
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https://techcabal.com/2024/01/02/five-trends-to-watch-out-for-in-african-tech-in-2024/
