African tech startup funding saw a significant decline in 2023, breaking a trend of growth since 2017. According to the African Tech Startups Funding Report, a total of 406 startups raised a combined total of $2.4 billion in funding, down 27.8% from the previous year. The number of funded ventures was down 35.9%. The decline in funding can be attributed to a shortage of capital, influenced by global factors such as the strength of the US dollar and high interest rates. The decline in funding has had a damaging effect on African tech startups, resulting in closures and scale-backs. The situation is expected to continue into 2024, as structural challenges and difficulties in finding capital persist. However, despite the challenges, there are some silver linings, such as better governance, diligence, and spend management. Longer-term investors need to remain committed and support startups during difficult times.
The Plunge of African Tech Startup Funding: What’s Next?
Latest from Blog
Arch Venture Partners secures over $3bn for Fund XIII
TLDR: Arch Venture Partners has raised over $3 billion for Fund XIII. Investors in the fund include Alaska Permanent Fund and Rockefeller Brothers Fund. In a recent development, Arch Venture Partners has
Raising Your First Venture Fund: Tips for Success
TLDR: Samir Kaji, a seasoned venture capital professional, shares a six-point plan for raising a venture fund as a first-time fund manager. Key steps include staying focused on a niche, not worrying
Exploring China’s Quantum Computing Breakthrough and VC Trends
TLDR: ONCO stock surged over 80% in pre-market after Altos Venture acquired a stake Chinese low float stocks like DUO rose over 40% in sympathy with large caps Summary: The article discusses
The Blindspot: Venture Capitalists’ Go-To Tool with Fatal Flaw
TLDR: Nader Al-Naji, founder of Bitclout, was arrested for an alleged crypto scam involving VC giant Andreessen Horowitz as a victim. VCs’ pattern matching led them to invest in Al-Naji despite red
Korean startups seek corporate investors in challenging ecosystem climate
TLDR: Korean startups are seeking corporate investors as funding becomes harder to secure. The government in South Korea has relaxed CVC rules to attract more foreign investment. Korean startups are facing a