Africa’s startups raised $26,9 million in funding, up from $12 million last year according to a new report from VC4Africa, the continent’s leading investor and startup network.
According to the report, the average amount invested per venture increased from USD 130K last year to over USD 200K this year. The research shows 49% of the ventures start generating revenue in their first year of operation. 44% of the ventures are successful in securing external capital investment.
In a statement, VC4Africa Co-Founder Ben White said: “We hope the research shows there are a growing number of businesses that are successfully growing their operations over time and adding much needed jobs to the African marketplace. This is a key message if we are going to get more capital involved in this space.”
The investment was high in the technology sector, followed by the Agriculture, Health, Finance and Energy sectors. The research also reveals that ventures that participate in sector events, or join an incubator or accelerator, secure on average 23% more than their counterparts who do not participate in such programs. And of the 600 investors part of the VC4Africa community 82% invested in an African venture.
The diaspora are also increasily interested in startups in their home countries and there is a growing appetite for cross-border investing in Africa generally.
The report summary version ocan be found here but the full report is made available exclusively to the VC4Africa Investor Network (VC4Africa Pro Account holders and partners). People interested to receive the full report should register as a VC4Africa Pro Account user on the VC4Africa website or contact the team at VC4Africa.