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African Tech Startups Funding Report 2020

11 months 2 weeks ago

Egypt was #1 at the top of the list for venture capital last year when measured by the number of transactions announced, global venture capital outfit Partech said this afternoon in its annual report on VC funding for African startups. Egyptian startups accounted for nearly a quarter of all transactions on the continent in 2020, with 86 having been announced, up 83% from the previous year.

The report details how Kenya, Nigeria, South Africa and Egypt are the premier investment destinations on the continent, though funding is also on the rise elsewhere. Fintech remains the dominant sector, and the number of investors grew substantially. All this while the world was gripped by the COVID-19 pandemic.

The report found that in 2020
African tech startups closed 347 deals
compared to 250 recorded in 2019

This year’s edition of the African Tech Startups Funding Report, and the list of funded startups on which it draws, is available FREE as a result of an open-sourcing initiative in partnership with Catalyst Fund, RTB House, Quona Capital, 4Di Capital, Villgro Africa, Lateral Capital, and Otundi Ventures. We thank our partners for their assistance in ensuring this vital data makes it into the hands of as many entrepreneurs as possible.


347 African tech start-ups raised a total of US$ 1.43 Billion in 359 equity rounds.

We tracked a total of 359 equity rounds raised by 347 start-ups, compared to 250 rounds by 234 start-ups last year: representing +44% growth YoY in deal count.

This is quite remarkable. In such a challenging year, more startups have closed rounds than in any previous year. Activity has grown by almost half. No other region in the world has seen anything like this. The global interest for the African tech ecosystem remains strong even in the context of the global crisis driven by the pandemic.

Read the full report: Download a pdf version of the report to give it a read.

Nigeria and Kenya edged Egypt out by total value of equity raised. Companies in Nigeria raised USD 307 mn and Kenyan outfits USD 305 mn against USD 259 mn by Egyptian companies. Egypt was, however, the fastest-growing market by total value in the top four, narrowing the gap with the top two. Partech said Egypt’s performance was thanks to “the strength of its ecosystem driven by high quality entrepreneurs and increased activity from regional MENA funds.”

Top industries: Egyptian companies accounted for 28% of all equity invested in fintech (second only to Nigeria with 38%) and nabbed about 50% of all funding for African logistics, mobility and edutech companies.

Only four countries are really competitive in the race for VC funding: Nigeria, Kenya, Egypt and South Africa each attracted well over 2x the value of funding landed by companies in Ghana last year. And Ghana? Companies there raised nearly 10x more than their nearest challenger.

Woman-founded startups accounted for 13% of all rounds raised last year, down 4 percentage points from the previous year, and for 14% of all equity raised.

Fintech accounted for 25% of total equity raised continent-wide in 2020, followed by agritech and then logistics and mobility. Off-grid technology companies and healthcare-focused tech outfits rounded out the top five.

Read the full report: Download a pdf version of the report to give it a read.



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