A look at the industry numbers shows that 2022 has been quite an interesting year for startups in Africa. Since the beginning of the year, a huge flow of venture capital investment has found its way into the African tech ecosystem, with many startups on the continent raising unprecedented amounts to expand their services, Technext reports.
Over $4 billion have already been raised by startups in Africa in 2022. This figure, however, represents some sort of decline due to Q3 numbers which were said to be “slightly disappointing.”
Unlike the first and second quarters of the year, Q3 “registered a fall of -53% YoY in the amount raised and -25% YoY in a number of deals ($100k+, excluding grants),” the newsletter said.
The reason for this may not be unconnected to a slow down in ‘mega deals’ of $100m and above. But of course, better days are ahead if one considers the impressive numbers recorded in the past. For instance, in 2021, 604 African startups raised a record high figure of $5.2 billion, according to the African Private Equity and Venture Capital Association (AVCA), an industry group.