The world’s venture capital industry is at an all-time high, blowing the roof in an unprecedented fashion. The global pandemic shook 2020’s VC funding at the early stages, but these investments staged a colossal comeback in the second half of the year.
Regardless of economic recessions, social unrest, and tensioned elections across the globe, venture capital smashed previous records. Also despite a substantial drop in the number of deals and funds closed, total raised VC funding rose 30 percent to USD 73.6 Bn—the highest so far.
Per TrueBridge’s State of Venture Capital Industry report, limited partners are also increasing their VC allocations. In 2020, the monetary value of the increased confidence in the VC industry resulted in a recording-breaking dry powder of USD 152 Bn.
Even in Q1 2021, Crunchbase data shows that global venture investments have sped up by 50 percent quarter-on-quarter to reach USD 125 Bn. On a year-on-year basis, that amount represents a gigantic 94 percent leap.
In Africa, the story isn’t any different. VC funding to startups building for the continent blew past the USD 1 Bn mark in 2019.
The investor rush pushed fairly through the pandemic, turning the attention of global backing behemoths towards the region. There aren’t just more fund managers in Africa, but also more LPs, GPs (General Partners), and Funds of Funds.
From WIMT to the largest network of fund managers
A few weeks ago when South Africa’s WhereIsMyTransport—an e-mobility startup—raised its USD 14.5 Mn Series A extension, the transport-tech scene in Africa revved with purpose. On the VC side of the investment, Cathay AfricInvest Innovation Fund and Naspers Foundry were in the spotlight—as leaders of the round.
But WhereIsMyTransport’s high-profile raise also saw the participation of other notable VCs from within and outside the continent. One of such is Wuri Ventures, a Francophone VC firm with a focus on Africa. The other? Capria Ventures, a global investment company with cash sums in the bank of some of the world’s best-known fund managers—like Global Ventures.
