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Rise in Startups Venture Funding in Africa


The latest Partech Venture’s annual financial report showed an increase in 2017 venture funding by 53%. The annual growth was estimated to reach $560 million. The increment was as result of improvement in number of startups competition rounds. For instance, in 2016, there were 77 rounds while 2017 had 128 founding rounds. The report incorporates startups with their market in Africa even if headquarters are situated in another continent.

Considering various sectors, financial inclusion accounted for $253 million, about 45% of the total venture raised.  According to the Fintech report, insurance tech and off-grid tech formed part of financial inclusion. Fintech African startups have really grown in appeal as well as reputation due to the large number of ticket transactions. Flutterwave largest series A Payment Company raised $10 million. Another report by Disrupt Africa also indicated that Fintech startups attracted nearly a third of the total startups funding in 2017.

Mobile consumption and online services generated about ($236 million) translating to 42% of the total investment funding.  The greatest deals according to the two financial reports came from this sector. The sector generated $69 million in series D investment by South African e-commerce startup, led by Naspers.

The report further showed that Kenya, Tanzania and South Africa are still the leading destination countries in the continent. However, the total funding investment in the countries slightly dropped from 81% in 2016 to 76% in 2017. Francophone Africa startups recorded increased investment summing up to $55.5 million or 10% of the total funding. This was also 14% of the aggregate transactions in 2017. Most recently, Partech Ventures has launched a pan-African fund located in Senegal, Dakar and French-speaking countries.


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Written by Denis Opudo

Am an engineer who's a tech blogger, hit me up on [email protected] and we base our discussion on technology in Africa and the rest of the world.
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