No doubt, startups in Africa have gulped multimillion dollars in investment deals. Across the continent, several venture capital (VC) firms have created special funding kitties focusing on women-led tech startups. There are also several investment vehicles that only fund women-led enterprises across the continent.
A report released by The Big Deal, a research firm tracking startups across the continent has revealed that African startups active on the continent and led by women raised $203.2 million in 2022. Though still a significant amount, it is 58% less than what enterprises of this sort mobilised in 2021.
The report further notes that the reduction of funds raised by these startups in 2022 largely goes against the general trend of the sector. Last year, however, remains one of the most successful years in capital funding for African startups in general
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The survey notes that although venture capital on the continent has been relatively successful, it has helped less than 3% of startups with female founders and only 4% of female entrepreneurs.
The report also highlights the performance of Africa’s five regions in raising investments.
The Western African region received the lion’s share at $1.8bn in 2022 which is a slight decline of 12% from 2021 when investments hit $2bn.
The Eastern Africa region, the report says, hit the $1bn milestone for the first time, and attracted twice as much funding last year compared to 2021. The region banked 1.2bn in 2022, up from approximately $600m the previous year. The Southern Africa region recorded a 44% loss from $1.1bn in 2021 to just over $600m in 2022.
The Central African region is still way behind its neighbours, raising only $50m. Nonetheless, this is double its 2021 numbers.