Startup & SME Market’s Post

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

In case you missed it: African Startup funding at 3-year low in Q1 2024 📉 In the first quarter of 2024, African start-ups secured approximately USD 466 million in investments via deals exceeding USD 100,000. This figure marks a 27% decrease compared to the previous quarter and a 47% decline compared to the same period last year. Such a downturn in funding hasn't been observed since the fourth quarter of 2020, marking over three years since investment levels were this low. On a positive note, the count of start-ups that have successfully raised funds of USD 1 million or more (including both equity and debt) has risen for the fourth quarter in a row as of Q1 2024, totaling 63. Although the average deal size may have diminished, the uptick in the number of deals suggests a resurgence of confidence in the continent's prospects. This trend is also indicative of the active deployment of numerous funds dedicated to Africa, which were established over the previous 18 months. Source: Africa: The Big Deal #startups #startupfunding #investinafrica

🌍“Infinite opportunities in Africa’s tech boom”: Breega launches $75m African seed fund 💡 Paris-based VC Breega has announced a $75m seed fund to invest in African startups, expanding its focus to Nigeria, South Africa, Kenya, and beyond. With $52m already raised, Breega is doubling down on a continent where they see “infinite opportunities,” says cofounder Ben Marrel 🚀 The fund will target agritech, edtech, healthtech, and infrastructure-focused startups across Africa’s key markets, with investments ranging from $100k to $2m. Offices in Lagos and Cape Town will anchor the firm’s local presence, driving impact where it’s needed most. 📈 Why now? Africa’s population is set to soar from 1.5bn to 2.5bn by 2050, creating immense demand for innovative solutions. Marrel emphasises: “This growth can’t be managed without technology.” 🤝 A question for the team at Breega. Breega describes the opportunities in Africa as ‘infinite’—how does this align with your ethos of creating sustainable, long-term value in markets that require patience, cultural understanding, and local expertise? Ben Marrel Daniel Shellard Nuan Zhang Melvyn Lubega Tosin Faniro-Dada #fund #africa Credit goes to Daphné Leprince-Ringuet for this amazing article ❤️

The African startup ecosystem experienced a mix of highs and lows in 2024. While global economic upheavals driven by inflation, and market volatility, and impacted investments, there were also moments of significant progress, including the emergence of a new unicorn and other key achievements. Key Highlights: Venture Capital Dominates: VC funding remained the lifeblood of African startups, solidifying its place as the preferred funding source. Corporate and Loan Financing Gain Traction: Beyond VCs, corporate venture capital arms and loan finance organizations played increasingly active roles in funding rounds. The Big Four Hold Strong: Nigeria, Kenya, Egypt, and South Africa continued to dominate as Africa's top destinations for startup investments. Challenges Persist: Investor confidence faced hurdles from economic uncertainty, regulatory barriers, and infrastructure limitations. Looking Ahead As we approach 2025, the focus is on scalable solutions, impactful investments, and collaborative growth, with hopes for an even more vibrant and resilient ecosystem. Dive deeper into the trends and insights that will shape African tech's future. https://lnkd.in/dxp9MDic #AfricanTech #StartupInvesting #Innovation #VentureCapital #2025Trends

Sawari Ventures, a leading venture capital firm from Egypt, is launching its second fund, #SawariVenturesII, with plans to raise $200 million. The firm is expanding beyond North Africa to invest in Kenya and West Africa, focusing on driving growth in startups across the continent. ☑️ Key Highlights: - $200M Fund: Sawari Ventures II will invest 70% ($140 million) in Egyptian startups, with the rest targeting #Kenya and #WestAfricanmarkets. - Series A & B Focus: Primarily investing in startups that have already gained early success, looking for Series A and B funding. - Sector Priorities: The fund will prioritize #Fintech, #DeepTech, #Healthtech, #ClimateTech, #DigitalEducation, and #AgriculturalTechnology —industries with immense growth potential. ❇️ The partnership with Bpifrance opens doors for cross-border collaboration between Africa and France, enabling an exchange of innovation, talent, and capital. This collaboration helps African startups tap into French R&D and French businesses expand into the African market. ✅ African Startups will be able to: - Access to Capital: The fund brings much-needed financial support to help African startups scale. - Cross-border Growth: Startups can now benefit from international collaboration and expertise through Sawari Ventures and Bpifrance. - Support for Emerging Sectors: By focusing on key sectors like Fintech and Climate Tech, Sawari Ventures is helping shape the future of innovation in Africa. Here is more: https://lnkd.in/dBK-HQVN #SawariVentures #Bpifrance #AfricanStartups #Fintech #VentureCapital #Kenya #WestAfrica #Innovation #Entrepreneurship

The world is digitalizing rapidly and tech startups are among the pioneers that are continuously bringing about innovation and disruption in the business world. Financing & Scalability are among the crucial elements required for startups to thrive in the cutthroat world of business. Looking at what's happening in the African continent, recorded debt and equity financing for startups has grown by more than 13 fold to USD 2.4 Billion over the past 9 years with the number of startups funded up by 224% during the same period. With Kenya, Nigeria, South Africa and Egypt having the largest share of Startups produced and money raised across the continent. Tanzania on the other hand has generally lagged behind it's African peers as far as funding is concerned and its ability to create competent startups. This report explores what the trend for startups have been in Africa as a whole as well as with Africa's startup giants, why we need to embrace the creation and fostering of startups in Tanzania as well as what we can learn from Africa's Silicon Valleys and what we need to do in order to foster disruptive startups Enjoy!!! Aika Shauri Disrupt Africa Tanzania Startup Association John Haule Fintech Association Of Kenya #startups #fintech #finance #economy #kenya #nigeria #southafrica #egypt #bigfour #tech #africa #education

Renew Capital Expands Focus in Africa Amid Lessons from Ethiopia After a decade of challenges investing in Ethiopia, Renew Capital is shifting its focus across Africa, targeting tech-enabled, asset-light startups. The venture capital firm plans to invest between $50,000 and $500,000 in over 40 startups within a year, starting with its first West African investment in Affinity, a Ghanaian digital bank. Renew Capital runs two funds, a $6 million angel syndicate and a $15 million follow-on fund, supporting startups with management training, digital marketing, and fundraising. Successful startups in their accelerator can receive up to $4 million in follow-on funding. The firm’s strategy emphasizes finding trustworthy, disciplined founders, with a strong focus on transparency and scalability. As they expand into new regions, including Nigeria, Renew Capital is committed to reshaping perceptions of Africa from a place of giving to a place of investing, driving economic growth and innovation across the continent. #VentureCapital #Africa #Startups https://lnkd.in/d4KuUvEC

African Tech Startup Funding Report (2024 Q1) In the first quarter of 2024, African startups raised $466 million, marking a 47% decline from the same period in 2023. $332 million of the total funding came from equity, while $132 million came from debt funding. The standout performer was Moove, securing $110 million in funding through a series B round, with $100 million from Uber and a $10 million loan from Stride Ventures . Following Moove were Roam with $24 million and Hewatele with $20 million. Distribution by Country: - Nigeria: 35% - Kenya: 24% - South Africa: 16% - Egypt: 12% Other countries attracting significant funding include Uganda ($16m), Ghana ($10m), Tanzania ($9m), and Morocco ($7m). Funding by Industry: - Transport and Logistics: 32% - Fintech: 23% - Agri & food Tech: 11% - Energy: 11% - Health: 10% (Source: Africa the Big Deal, 3rd April 2024) #TechStartups #AfricanTech #FundingReport #StartupFunding #EquityInvestment #DebtFunding #shefoundry #founders #femalefounders #techfounder

Paris VC Breega announces $75 million Africa fund launch Paris-based #VC firm #Breega has launched its first Africa-focused fund, with an impressive $75 million aimed at pre-seed and seed startups across the continent. This marks Breega's sixth fund overall and the first outside of Europe, underscoring its commitment to Africa's burgeoning tech ecosystem. Breega was founded by Ben Marrel, who also serves as the CEO. Leading the Africa fund are Melvyn Lubega, co-founder of the edtech unicorn Go1, and Tosin Faniro-Dada, CPA, former CEO of Endeavor Nigeria. The fund has received significant backing from institutions such as Bpifrance and the Dutch entrepreneurial development bank, FMO. The focus of this fund will be on key markets including Nigeria, Egypt, South Africa, Kenya, and Francophone Africa, which includes countries like Morocco, Senegal, Ivory Coast, Cameroon, and the DRC. Breega plans to invest between $100,000 and $2 million in startups operating in high-impact sectors such as fintech, health tech, proptech, logistics, and edtech. Breega’s approach is unique, as it offers more than just capital. With over a quarter of their team dedicated to supporting portfolio companies, Breega provides comprehensive operational expertise in areas like go-to-market strategy, talent management, governance, and brand communications. The launch of Breega’s Africa fund is a significant milestone for the continent’s tech ecosystem. It is poised to bring more unicorns and transformative solutions to the market, fostering innovation and addressing unique local challenges. With new offices in Lagos and Cape Town, Breega is well-positioned to tap into Africa's immense opportunities and replicate its European success. The article on TechCrunch in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW