The number of African tech startups receiving funding in 2016 has risen by almost 17% compared to the previous year, a new report found.
The second annual Disrupt Africa Tech Startups Funding Report found that 146 African startups raised US$129.1-million in 2016. The report clarified that, while the number of startups receiving funding has increased, the actual amount of funding saw a decline.
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As for the most popular nations, South Africa, Kenya and Nigeria accounted for just over 80% of funding secured. Fourth-placed Egypt was a fast mover though, seeing 100% fundraising growth.
The continent has seen a slew of fintech-related startups in recent years, so it’s no surprise that this was the most popular option for funding (receiving US$31.4-million in total).
Although more African tech startups saw funding in 2016, the total amount ploughed into the continent’s startups saw a decline, the report found
Disrupt Africa co-founder Tom Jackson weighed in on the report’s findings.
“The general theme of 2016 has been more rounds, but with fewer standout tickets than in 2015. The African tech space has not been immune to the economic pressures faced by other sectors, but it is proving extremely resilient. The fact more startups raised funding in 2016 than ever before demonstrates the vitality of this sector, and we expect investor interest to grow and grow over the course of 2017.”
Gabriella Mulligan, Disrupt Africa’s co-founder, was encouraged by the results.
“2016 was another great year for African tech startups and investors. Our ecosystem progressed in leaps and bounds over the course of the year, which is evidenced by strong growth in the number of startups raising funding, and an encouraging expansion of ecosystem activity across the continent. We’re excited to present the Disrupt Africa Tech Startups Funding Report 2016, and hope it helps chart the rise of Africa’s entrepreneurs.”
The 2016 edition of the Disrupt Africa Tech Startups Funding Report can be purchased via Disrupt Africa’s website.
Feature image: Tracy O via Flickr.