Bendada.com, a leading tech-focused media platform in Nigeria, has announced its inaugural State of African Tech Funding Report 2023. This comprehensive report sheds light on the remarkable events that took place in the African tech ecosystem in 2023.
“The trajectory of venture funding to African startups is beginning to look like a bell curve from barely anything 10 years ago to a rapid acceleration in 2021, peak funding in 2022, and a deceleration starting from 2023. Our analysis reveals that without any intervention, this year 2024 could continue last year’s decline,” says Benjamin Dada, Founder and Publisher of Bendada.com.
Last year, African startups raised $2 billion in equity funding which is a 43% decline from 2022, according to the BD Funding Tracker curated by the Bendada.com team.
“Following the record jump of over 200% in funding to African startups in 2021, we began to pay closer attention to the funding numbers. We believe that following the money provides a lens to examine the changing landscape of innovation and entrepreneurship in Africa. However, no two funding reports came to the same conclusion as to the funding statistics and insights. So, starting 2022, we decided to build our proprietary database and subsequently, generate our own insights” adds Dada.
Key findings from the report include the:
- total amount of equity funding raised by African startups
- top destinations for funding in Africa
- hottest sectors in African tech
- layoffs and shutdowns of 2023
- outlook and startups to watch in 2024
- African startups raised $2 billion in equity funding in 2023, which represents a 43% decline compared to the previous year.
- The big four (Nigeria, Egypt, Kenya & South Africa) retained their position as the top investment destination in Africa.
- Fintech’s share of VC funding accelerated from 30% in 2022 to 50%, thereby continuing to maintain its lead in sector funding, while cleantech, mobility, and e-commerce followed.
- African startups prioritize profitability and strong unit economics, indicating a mature ecosystem where business models and solid execution take center stage.
“We are excited to introduce our inaugural State of African Startups VC Funding Report which provides a comprehensive analysis of the African tech funding landscape in 2023,” said Benjamin Dada, Publisher of Bendada.com.
“As an indigenous and independent media organization, we have been providing fair and factual reporting on the African tech ecosystem. Our State of African Tech Funding report reflects our dedication to providing actionable insights that empower entrepreneurs, talents, investors, and policymakers to navigate and contribute to Africa’s rapidly evolving tech ecosystem.’’
Our funding tracker collates open and verified data on funding events in Africa, which makes us an independent tool for investors, startups, and media outlets across the world. We are committed to continue showcasing the incredible innovation happening across the continent.
The State of African Tech Funding Report 2023 is now available for download on Bendada.com’s website.
Bendada.com is a leading tech media dedicated to covering the latest trends, innovations, and insights shaping the African tech landscape. With a mission to empower Africa’s tech community, we provide in-depth analysis, thought-provoking content, and comprehensive resources for entrepreneurs, investors, and technology enthusiasts on the continent.