Uncertainty and risk-taking are nothing new in the African tech ecosystem, but lately, startups have been facing their roughest time yet. The much-dreaded funding winter is finally encroaching on their doorsteps, casting a shadow of doubt over aspirations for the continent’s digital future.
Tech funders are becoming more cautious with their investments, making it harder for startups to secure growth capital. Although funding into the continent’s tech companies has relatively boomed for the last couple of years, fresh figures paint a rather blurry picture of what’s to come.
In 2021, African tech ventures raised USD 4.08 B, marking their biggest year yet. In 2022, the change of climate in the global VC market was only a little evident locally, with startups raising USD 3.6 B. WT Data Labs shows just USD 786 M has so far been raised in 2023.
This performance, which is just a tad more than the intake for the pandemic-inflicted year 2020, is largely on the back o...
