Over 300 African tech startups have raised more than US$1.1 billion combined so far in 2021, the first time the sector has broken the US$1 billion mark and with some four months of the year yet to come.
According to Disrupt Africa, up to and including August 11, 2021, a total of 303 African tech startups raised a combined US$1,184,220,000, up 69pc on the US$701,460,565 banked over the entirety of 2020.
The sector passed the US$1 billion investment mark for the first time with 303 startups having raised funding so far, last year’s tally of 397 funded startups is also set to be comfortably beaten if things continue in the same manner for the rest of the year.
Nigeria is leading the way, with rounds for the likes of Flutterwave, Kuda, TeamApt, FairMoney, and Moove being major contributors to the impressive funding total, but there have also been key rounds for the likes of MaxAB (Egypt), Trella (Egypt), Yoco (South Africa) and LifeQ (South Africa).
The amount of funding going to African startups has increased year-on-year for the past five years (with a decrease from 2015 to 2016 preventing the clean sweep). In 2015, the continent’s startups raised a combined US$185,785,500. This total declined 30.5 percent to US$129,113,200 in 2016.
Thereafter began the growth – in 2017, total funds raised were up 51 percent at US$195,060,845; soared a further 71.5 percent in 2018 to reach US$334,520,500; grew 46.7 percent again to US$491,623,400 in 2019; and increased 42.7 per cent to US$701,460,565 in 2020.