African tech startups funding rises 17% in 2016; South Africa, Nigeria, Kenya most popular investment destinations
A report released today by Disrupt Africa, Disrupt African Tech Start Up Funding Report, showed that 146 startups from across the African continent raised $129,133,200 in funding over the course of 2016. This shows a 16.8% rise from 2015 in the number of African tech startups who secured funding.
“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,” said Gabriella Mulligan, co-founder of Disrupt Africa.
The report analyzed nine sectors with the fintech sector receiving the most backing in 2016 with 24% of the total, raising a combined $31.4 million. This highlighted the massive emphasis placed on technological advancements in the finance sector in Africa.
The three most popular investment destinations are South Africa, Kenya and Nigeria; between the three nations 80.3% of funds were secured. The fourth most popular country is Egypt who saw their growth rise an impressive 100%.
What to expect for 2017:
Tom Jackson, co-founder of Disrupt Africa said that “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 factthat more startups raised funding in 2016 than ever before demonstrates the vitality of this sector, and we expect investor interest to grow steadily over the course of 2017.”