Are African Startups Raising Foreign VC Money In Excess?

Africa, one of the world’s youngest tech ecosystems, is in its early days of blossoming. As more funding becomes available to early-stage companies, the continent births unicorns more frequently and is witnessing a lot more investor exits. The number of USD 1 Bn+ African startups has managed to reach its first round figure, pumping up the overall worth of the region’s innovation landscape. 

The Global Startup Ecosystem Report 2021 by Startup Genome and the Global Entrepreneurship Network says the entire startup environment in Africa is currently worth USD 6.6 Bn, with an exit worth of USD 1.1 Bn so far. USD 6 Bn of the entire worth concentrates in just five cities: : Cape Town, Lagos, Johannesburg, Nairobi, and Accra. Plus, on the fundraising front, angel investments, venture capital and private equity grow unabated.

But, in a separate report by the African Private Equity and Venture Capital Association (ACVA)—which takes only 4 unicorns (JUMIA, Interswitch, Fawry and OPay)...