146 startups from across the African content raised US$129,133,200 in funding over the course of 2016, a report released by Disrupt Africa reveals, representing a 16.8% rise from 2015, even as overall funding declined from 2015.
The report also shows that South Africa, Nigeria and Kenya were the top three destinations for tech investors in 2016, both in terms of numbers of deals and the total amount of funding. The three countries accounted for 80.3 per cent of funds secured, and Egypt saw a 100% increase in fundraising year-on-year, making it the fourth-ranked destination.
Sector specific research further shows the fintech sector received the most funding, while the agri-tech sector saw the biggest percentage growth as compared to the previous year. They raised a combined US$31.4 million, 24 percent of the overall total.
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. Gabriella Mulligan, Disrupt Africa co-founder
“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,” said Tom Jackson, co-founder of Disrupt Africa.
Of the nine sectors analysed in the report, the fintech sector received the most backing in 2016, with startups in this space raising a combined US$31.4 million, 24 percent of the overall total.
For more information, visit disrupt-africa.com/funding-report.