From Here Ventures’ Post

A Slowdown, but Resilience and Growth Continue in Africa’s Startup Ecosystem. After a stellar July, August 2024 saw a dip in startup funding, with $56 million raised—nearly 8x less than July’s $443 million and 4x less than August 2023’s $234 million. This slowdown made August the second-slowest month for funding in four years. However, the strong performance in July has kept Q3 funding ahead of Q1 and Q2 combined, showing the ecosystem’s ability to bounce back. Key Highlights from August: - Total Funding: $56 million (87% equity, 9% debt, 4% grants) - Startups Funded: 27 (below the 12-month average of 40+) Top Deals: - Fido (Ghana): $30m (Fintech) - Solarise Africa (South Africa): $9m (Energy) - Waza (YC W23) (Nigeria): $8m (Fintech) Despite the August slowdown, several African startups have continued to secure vital funding, demonstrating the ecosystem’s resilience and innovative spirit. Recent Funding Highlights: Kasha (Rwanda): Expanding access to women’s healthcare products with additional funding. Chpter (Kenya): $1.2m to grow its AI-powered social commerce platform across Africa. Wattnow (Tunisia): Closed a multi-million dollar funding round for its IoT-based smart energy management solution. Cercli (MENA): $4m seed funding to simplify payroll management and strengthen its presence in the MENA region. Kredete (Nigeria): Secured $2.25m to enhance fintech services for African immigrants, driving financial inclusion. As we look ahead, the continent’s potential for growth and impactful solutions remains stronger than ever. Let’s keep building towards a brighter future for innovation and economic development across Africa! Source: Africa: The Big Deal, Tech Safari #FromHereVentures #VentureCapital #AfricaTech #StartupFunding #Innovation #EconomicGrowth

As an established business, we don't always track what happens in the business startup space. It was with the pride of an African-domiciled business that I recently saw some statistics about the African business startup ecosystem and how it is experiencing a definite uptick in digital investment opportunities. In the third quarter of 2023 alone, African tech startups secured $1.4 billion in funding — that is quite a number! There is quite a bit of investor interest in digital startups in Africa. This influx of funds presents a significant strategic opportunity for both early-stage and more mature startups to secure the capital they need to expand and realise their potential. The sector isn't just growing; it's thriving with resilience, showcasing a robust 28% uptick in capital raised by these ambitious entrepreneurs. Digital investment "hotspots" are emerging across the continent, with Morocco, the Democratic Republic of Congo, Rwanda, Tunisia, Senegal, Ghana, Benin, and Tanzania leading the way in attracting the lion's share of these investments. With our rapidly growing footprint in the Business Process Outsourcing space, it is clear where our investment focus will be for the next few years. We will also track the activity of the regional accelerators and incubators and their investment focus. Africa has a vibrant investment climate, and we salute those early-stage ventures, innovative startups, and digital solutions that are leading the way in unlocking the continent's growth potential. Are you as excited as I am about Africa's emerging tech boom? I've left a link in the comments; have a look! #VintonGroup #AfricaTech #AfricanStartUps

Despite challenges similar to those faced by other continents, Africa remains a prime investment hub that shouldn't be ignored. For VCs looking to tap into the dynamic market of African startups? Let’s talk to engineer a connection. Why Invest in African Startups? Rapid Economic Growth: Africa is home to some of the fastest-growing economies in the world, offering a fertile ground for innovative businesses. Untapped Market Potential: With a young and growing population, Africa presents a vast and largely untapped market for new products and services. Diverse Opportunities: From fintech, mobility, and agritech to healthtech and edtech, African startups are at the forefront of solving unique local and global challenges. High Returns: With lower initial investment requirements and significant growth potential, African startups offer attractive returns on investment. If you want to have this conversation, send an email let's start the conversation [email protected] #Startups #VentureCapital #Vc #Funding #Africa #FundAfrica #Connection #Conversation #Antler #YC #Capital #Sequoia #GoogleVentures #KhosiVentures #IndexVentures #Blackrock #AndreessenHarowitz #NewEnterpriseAssociates #LightspeedVentures #Accel #Bessemer #BatteryVentures #TigerGkobal #FounderFund #GreylockPartners #CanaanPartners #FirstRound #500Global #Benchmark #InsightPartners

🌍💡 Unlocking Africa’s Startup Potential: Building Local Investment Ecosystems 💡🌍 The African startup ecosystem faces significant challenges. In the first half of 2024, venture investments declined by 65%, according to the African Private Capital Association (AVCA). Historically, 77% of Africa’s venture funding has come from foreign sources, and the reduced foreign interest is being felt deeply. But here’s the truth: Africa’s future cannot depend solely on foreign investors. We must build a thriving local investment ecosystem. 💼 The Call to Action for Africa’s Wealthy: It’s time for our #African #millionaires and #billionaires to step up and invest in the continent’s innovation and entrepreneurship. Local angel investors and venture funds can drive a new wave of growth by backing startups that address Africa’s pressing needs in sectors like fintech, agritech, healthcare, logistics, and more. 🚀 The Opportunity Ahead: 1️⃣ Developing Early-Stage Companies: Strong local funding ecosystems can nurture startups with clear business models and scalable solutions, making them attractive to larger investors. 2️⃣ Empowering Local Entrepreneurs: African startups must focus on leveraging homegrown capital to create resilient businesses that reflect the continent’s unique needs. 3️⃣ Shifting the Narrative: Investing in startups isn’t just about profit—it’s about transforming economies, creating jobs, and building a sustainable future for Africa. 💬 Let’s Build the Future Together: This is a pivotal moment. By fostering local investment, Africa can reduce reliance on foreign funding and create a sustainable, self-reliant startup ecosystem. To our local investors: What’s stopping you from being part of Africa’s next big success story? #AfricaStartups #AngelInvestors #VentureCapital #Innovation #Entrepreneurship #LocalInvestment #SustainableGrowth 🌱🚀✨

Hey, did you hear about how African startups fared in terms of funding in 2023? It was a bit of a rollercoaster. Despite a slowdown in global funding, African startups managed to secure around $3.5 billion in VC investments. But there was a drop in equity funding by about 54%, with debt funding becoming more popular as an alternative source of capital. The usual suspects like South Africa, Nigeria, Egypt, and Kenya still dominated the market, but there was also a shift towards Francophone Africa, with countries like Morocco, Rwanda, and Senegal getting more attention and funding. One interesting thing was the decrease in investor participation by about 50%. This affected larger funding rounds, and we saw fewer mega-deals happening compared to the previous year. Fintech continued to be the star of the show, getting the most funding, followed by clean tech, logistics, health tech, and enterprise sectors. It's exciting to see how African startups are evolving and attracting investment, despite the challenges. Source: TechCrunch #startups #funding #tech #vc

🤯Debt is now ⅓ of the total funding to startups! In H1 2024, there was a substantial increase in debt financing, accounting for one-third of all funding raised—much higher than the historical average of 17% since 2019 according to Africa: The Big Deal. What does this mean? Well, it means that startups now have more access to capital without dilution! On the other hand, unlike equity debt MUST be repaid within a certain period, which can strain cash flow and stifle growth, especially for early-stage startups. GOOD or BAD? Funding is crucial for startups as it provides the necessary resources to scale operations, innovate and compete in the market. However, African startups still face significant challenges in securing the funding needed. In H1 2024, African startups recorded a 57% decline in investments in H1 2024 compared to H1 2023, with $780 million raised. This could probably explain the shift to debt financing as a viable alternative for maturing startups looking for new sources of funding to fuel their expansion. Connecting startups with global investors can help bridge the investment gap for early-stage African startups. This is why Bantaba is building a community that fosters these connections in the African tech ecosystem. Sign up with our syndicate community and get started with investing in African startups here: https://buff.ly/3W5Y6QG Data Source: Africa: The Big Deal https://buff.ly/3zOH8JR #Bantaba #AfricanStartups #StartupFunding #Innovation #Entrepreneurship

So what happened in the African startup funding landscape in the first half of 2024? As predicted, the ecosystem faced significant challenges. For instance, the total funding dropped by 57% compared to H1 2023, amounting to approximately $780 million. Be that as it may, key sectors such as transport, fintech, and cleantech continued to attract substantial investments. 𝐎𝐯𝐞𝐫𝐚𝐥𝐥 𝐅𝐮𝐧𝐝𝐢𝐧𝐠 𝐓𝐫𝐞𝐧𝐝𝐬: African startups raised approximately $780 million in H1 2024, marking a notable decrease from the $1.8 billion raised in H1 2023. This 57% drop reflects the broader economic pressures but also highlights a shift towards more sustainable and strategic investments. 𝐓𝐨𝐩 𝐅𝐮𝐧𝐝𝐞𝐝 𝐒𝐭𝐚𝐫𝐭𝐮𝐩𝐬: ✅ Moove (Nigeria) - $100 million ✅ M-KOPA (Kenya) - $51 million ✅ SPIRO (Kenya) - $50 million ✅ SunCulture (Kenya) - $27.5 million ✅ Roam (Kenya) - $24 million ✅ PULA (Kenya) - $20 million ✅ Valu (Egypt) - $18.7 million ✅ OneOrder (Egypt) - $16 million ✅ Planet42 (South Africa) - $16 million ✅ Simera Sense (South Africa) - $15 million Jesse Moore Christo Rust Johann Du Toit Ana-Mia Louw Kammy Brun Eerik Oja Marten Orgna Tamer Amer Karim Maurice Walid Hassouna Mostafa El-Sahn Habiba Naguib Thomas Njeru Rose Goslinga Sarfraz Shah, FIII Nabil Janmohamed Silvere Mantz Cedrick A Todwell Joyce Mlewa Mikael Gånge Clare Awuor Olov Daniels Filip Lövström Samir Ibrahim Njeri N. Hack Stiernblad Henry Clarke Andrew Reicher Mikayla Czajkowski Ladi Delano   Learn More 👉 https://lnkd.in/dBAn9TrB #empowerafrica #africa #investinafrica #AfricanStartups #Innovation #Funding #Entrepreneurship

Amidst the ongoing funding downturn, South Africa’s tech ecosystem has shown the most resilience among its African peers. The SA tech sector maintained strong fundraising numbers in 2023, including multiple follow-on rounds, while also being the only one in sub-Saharan Africa to record an increase in average valuations. Experts attribute this resilience to a strong business culture and favorable macroeconomic conditions. “‘SA startups may not be paper unicorns, but they are generally robust, sustainable and capital efficient,’ says Keet van Zyl, managing partner at Knife Capital told TechCabal. He added that South African startups also have a good balance of sensible valuations based on real unit economics, which makes them investible in a macroeconomic slump. “Will Green, co-founder of business development firm Co.Lab, concurred that because of how risk-averse the South African VC market has been in the past, startups have had to build solid businesses to even get a sniff at VC cheques. ‘When the market reset as it did, those principles of good unit economics and fundamentals have proven to be the saving grace for the SA ecosystem,’ Green told TechCabal.” Via TechCabal. https://lnkd.in/dNzx7cqc #tech #resilience #africa #resiliencebuilding #innovation #business #startups #africanstartups

🚀 Update on Venture Capital in Africa (2023-2024) 🌍 The venture capital landscape in Africa is undergoing significant transformation, reflecting both resilience and challenges. Here’s what you need to know: 📈 Recovery and Growth: - Despite a challenging 2022, early 2024 has shown a modest increase in deal value, with $360M raised by African startups in Q1 2024, bouncing back from the last quarters of 2023【6†source】【7†source】. - Q3 2023 saw a 28% increase in capital raised compared to the previous year, showcasing the continent's resilience【9†source】. 💼 Sector Highlights: - Financial services, IT, and e-commerce are leading the way, driving most of the deal volume and value in 2023, reflecting Africa’s evolving consumer landscape【9†source】. ⚠️ Challenges: - Early-stage startups have been hit hard, with seed and early-stage deal activities dropping by 70% and 60%, respectively, in 2023【9†source】. - The collapse of key financial backers like Silicon Valley Bank has impacted several companies, necessitating operational downsizing【8†source】. 👩💼 Gender Disparities: - Female founders face significant hurdles, receiving just 1.9% of VC funding. More support and initiatives are needed to bridge this gap【8†source】. 💡 Future Outlook: - Fundraising for VC vehicles could hit a record high in 2024. Startups must focus on strong business models and capital efficiency to attract cautious investors【6†source】【7†source】. African entrepreneurs are proving their resilience and innovation. Let’s continue supporting and investing in the bright future of Africa’s startup ecosystem! #VentureCapital #AfricaRising #StartupEcosystem #Innovation #Entrepreneurship #Investment Feel free to share your thoughts or reach out for more insights! 🌟

𝐁𝐫𝐞𝐞𝐠𝐚 𝐒𝐞𝐜𝐮𝐫𝐞𝐬 $𝟓𝟐𝐌 𝐓𝐨𝐰𝐚𝐫𝐝 $𝟕𝟓𝐌 𝐀𝐟𝐫𝐢𝐜𝐚𝐧 𝐒𝐭𝐚𝐫𝐭𝐮𝐩 𝐅𝐮𝐧𝐝 Breega, a European venture capital firm, has secured $52 million toward its new $75 million African fund, with plans to complete fundraising by the end of year. The firm has established offices in Lagos and Cape Town, Its partners Melvyn Lubega and Tosin Faniro-Dada oversee operations in these locations. The fund aims to invest in major African startup hubs including Nigeria, Egypt, South Africa, Kenya, and various Francophone countries. The investment strategy focuses on seed-stage investments ranging from $100,000 to $2 million, with 30-40% of the fund reserved for follow-on rounds. Backed by high-net-worth individuals, tech entrepreneurs, and institutions including Bpifrance and FMO, Breega has already invested in nine African startups over the past two years, including Kenyan fintechs Sava and Kwara, and Ugandan digital loan provider NUMIDA. The fund's investment focus aligns with Africa's projected population growth from 1.5 billion to 2.5 billion by 2050, targeting sectors crucial for development including agritech, edtech, healthtech, fintech, logistics, mobility, and energy. #VentureCapital #AfricanTech #StartupFunding #InnovationAfrica #Fintech #Healthtech #Agritech #BreegaAfrica #AfricanStartups