New data from startup funding platform, VC4Africa, have identified South Africa, Nigeria and Kenya as the startup hotspots on the continent.
The research published in the 2015 Venture Finance in Africa report, sampled 104 startups with funding from VC4Africa across eight countries in the continent based on three variables: investments tracked, average investment and sum of all investment. According to the research summary made available to Techcabal, South Africa has the largest, Nigeria the most and Kenya the highest total startup investments.
What this means is that, on the strength of the research, South Africa has the largest investment per startup (average investment) at $250K average, and Nigeria has the largest mass of startups (investments tracked) in its ecosystem, at 24 (startups), while Kenyan startups have received most funding from the platform (sum of all investments) at $4.7 million out of a total $27 million total investment by VC4Africa over the period tracked by the research.
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Number, Average and Total of Startup Investment In Selected African Countries |
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| Country | Investments tracked | Average investment (USD) | Sum of all investments (USD) |
| Nigeria | 24 | 57,000 | 1, 400,000 |
| Kenya | 19 | 250,000 | 4, 700, 000 |
| Tanzania | 12 | 66,000 | 788, 000 |
| South Africa | 11 | 250,000 | 2, 800, 000 |
| Ghana | 10 | 65,000 | 648, 000 |
| Uganda | 10 | 152,000 | 1, 500, 000 |
| Cameroon | 9 | 28,000 | 251, 000 |
| Egypt | 9 | 42,000 | 381, 000 |
“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,” VC4Africa Co-Founder, Ben White says. “This is a key message to investors. Now is the time to get involved in this space.”
These data and other insights from the research will form part of Ben White’s session later today at the the 2015 Global Entrepreneurship Congress in Milan.
Image via: Thinkstock
