According to a report published by Disrupt Africa, Kenya, Nigeria and South Africa emerged as the top three destinations for tech investors in 2016, in terms of numbers of deals and total amount of funding.
The report titled Disrupt Africa African Tech Startups Funding Report 2016, shows that African tech startups raised funding in excess of $129 million, with the number of startups securing funding up by 16.8 per cent compared to the previous year.
“The general theme of 2016 has been more rounds, but with fewer standout tickets than in 2015. The African tech space has not been immune to the economic pressures faced by other sectors, but it is proving extremely resilient. The fact more startups raised funding in 2016 than ever before demonstrates the vitality of this sector, and we expect investor interest to grow and grow over the course of 2017,” said Tom Jackson, co-founder of Disrupt Africa.
The report contains Sector-specific breakdown across nine sectors with the FinTech sector receiving the most funding, with startups in this space raising a combined US$31.4 million, 24 per cent of the overall total.
Also showing significant growth was the AgriTech sector which saw the biggest percentage growth as compared to the previous year.
Other information contained in the report includes:
- Detailed information on funding activity in eight African countries;
- Figures on the number of deals per location, and average deal sizes;
- Highlights of key deals across continent;
- Tracking of acquisitions in 2016;
- Comparative analysis of the ecosystem over 2015 to 2016;
Gabriella Mulligan, co-founder of Disrupt Africa while speaking out the report stated that “2016 was another great year for African tech startups and investors. Our ecosystem progressed in leaps and bounds over the course of the year, which is evidenced by strong growth in the number of startups raising funding, and an encouraging expansion of ecosystem activity across the continent. We’re excited to present the Disrupt Africa Tech Startups Funding Report 2016, and hope it helps chart the rise of Africa’s entrepreneurs.”
The report, which is in its second year is 49 pages and is currently being sold online for $300.