Africa Tech Venture Capital Hotspots

African Tech Venture Capital Hotpots

The 2021 Africa Tech Venture Capital Report reveals a record-breaking year for African startups, with $5.1 billion raised across 547 deals. This represents a 2.3x increase from 2020's $2.2 billion. Fintech remains the leading sector, accounting for 48% of total funding. Nigeria, South Africa, and Kenya are the top three countries, receiving 68% of the total funds raised. Early-stage rounds (pre-seed to Series A) saw significant growth, with a 3x increase in funding compared to 2020. The median deal size increased to $2.5 million, up from $1.5 million in 2020. Late-stage rounds (Series B and beyond) also saw impressive growth, with a 3.3x increase in capital raised. M&A activity increased significantly, with 34 acquisitions in 2021, up from 19 in 2020. The report highlights the growing interest from global investors in Africa's tech ecosystem and its potential for further growth

Key Takeaways

1. African startups raised a record-breaking $5.1 billion in 2021, a 2.3x increase from 2020.
2. Fintech remains the leading sector, accounting for 48% of total funding.
3. Nigeria, South Africa, and Kenya are the top three countries, receiving 68% of the total funds raised.
4. Early-stage and late-stage funding rounds experienced significant growth, with a 3x increase for early-stage rounds and a 3.3x increase for late-stage rounds.
5. M&A activity in Africa's tech ecosystem grew substantially, with 34 acquisitions in 2021, up from 19 in 2020.

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Key Figures

1. $5.1 billion - The total amount raised by African startups in 2021.
2. 2.3x - The increase in funding from 2020 to 2021.
3. 48% - The proportion of total funding accounted for by the fintech sector.
4. 68% - The percentage of total funds raised by Nigeria, South Africa, and Kenya.
5. 34 - The number of acquisitions in Africa's tech ecosystem in 2021, up from 19 in 2020.

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