African startups join the global finance boom as fintech shines – TechCrunch


The Exchange is on a trip around the world, sticking its head into various startup markets to better understand how different geographies are doing during a historic boom in venture capital activity. Globally, the the world of venture capital is on fire, driving record sums to tech startups. But capital does not flow evenly.

For example, the capital explosion raised by American startups this year It contrasts with a moderately cooled Chinese venture capital scenario. But apart from China, most key start countries and regions are seeing strong investor interest. The African continent is no exception.


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Early data indicates that Africa is poised to break all-time records in terms of venture capital raised in the year and that the first half of 2021 saw roughly double the funds raised by African startups than was recorded in the first half of 2020. never had more access to capital than now.

But large numbers can distort. A few large rounds can make the overall investment outlook look more optimistic than it actually could be for startups on the ground. And to fully understand access to capital in a startup market, we want to better understand the stages where capital flows quickly and the points in startup life where it’s more of a trickle.

To that end, The Exchange compiled a number of data sources on Africa’s venture capital performance in the second quarter of 2021 and the first half of 2021 and compiled notes on the results of Dario Giuliani of Briter bridges, a business data provider focused on Africa, and Julio Dibwe Mupemba of Toumaï Capital to broaden our understanding of the continent.

Let’s find out which startup stages have the easiest and most difficult access to capital, if Africa remains underfunded, understand the changing diversity in founder funding, and what about the impressive fintech company totals in recent quarters.

A comeback in 2021

After a somewhat difficult 2020, venture capital flowing into African startups is on the rise again, with reports indicating that investments raised in the first half of 2021 totaled more than $ 1 billion, albeit with minor variations: Data discrepancies are a recurring problem when it comes to VC data. exist structural ratios of slightly divergent numbers They have not completely disappeared, but our different sources still agree on the general trend and the results of the stadium.

For example, him Africa-focused Substack Newsletter The Big Deal reported a total of $ 1.14 billion in the first half of 2021 for deals greater than $ 1 million, and $ 1.19 billion when deals in the $ 100,000 to $ 1 million range are included. Those figures coincide with Briter Bridges’ own count of $ 1.2 billion in funding disclosed between January and June 2021, and with an estimate of $ 1.03 billion from the Global Private Equity Association (GPCA). These figures are also in line with the predictions for 2021 of the technological accelerator AfricArena, which in a report earlier this year estimated that “investment in [African] tech startups will be between $ 2.25 and $ 2.8 billion, making it the best year in the history of tech investment on the continent. “




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