Funding for African digital startups falls significantly in the first quarter of 2023.
Between January 1 and March 31, 2018, African tech companies raised US$649,303,000, a decrease of 57.2% from the total raised during the same period in 2022 as the industry starts to suffer the effects of the global economic climate.
The most recent edition of Disrupt Africa’s annual report on funding for African tech startups, which is made freely available in collaboration with Flat6Labs, MarketForce, 4Di Capital, Mercy Corps Ventures, Newtown Partners, and InsiderPR, claims that 633 such startups raised a total of US$3,333,071,000 in 2022.
This showed enormous development. The overall amount of investment acquired climbed by 55.1% to US$2,148,517,500 in 2021, while the number of supported businesses increased by 12.2% to 564.
Nonetheless, 87 companies have received funding so far, which is fewer than half the number (175) that had done so at this point last year, indicating that this year is likely to be a regressive one. Yet as of April 1, 2022, the startups had collectively earned US$649,303,000, down from US$1,515,556,000 at that time.
If the current pattern maintains, year-over-year funding seems poised to decrease by more than 50%. Last year’s Q1 ended up accounting for over half the startups and half the total investment for the entire year 2022.
