In 2023, Nigerian startups attracted the least funding, among the many Huge 4 in Africa, with Kenya rating first place, a brand new report exhibits.
In its current report, Africa: The Huge Deal famous that the ‘Huge 4’ attracted 87 % of all of the start-up funding in Africa, their largest share since 2019.
In keeping with the report, Kenya attracted essentially the most funding with $800 million raised in 2023, which is 28 % of the continent’s complete, Egypt raised $640 million, adopted by South Africa with $600 million and Africa essentially the most populous nation acquired the least funding of $410 million.
The analysis platform disclosed that these startups that raised funding among the many large 4 are dwelling to 71 % (357 out of 500) of the start-ups who raised $100k or extra on the continent final 12 months.
BusinessDay reported a 39 % year-on-year decline, a complete of $2.9 billion in 2023 in comparison with the $4.8 billion raised in 2022.
“Regardless of this downturn, the report highlighted that the outcomes had been higher than anticipated, given the worldwide slowdown in enterprise capital (VC) exercise throughout the 12 months,” it stated.
Nevertheless, the report disclosed that Nigeria is the nation the place essentially the most dramatic change occurred in 2023. Whereas the nation nonetheless claimed the best variety of start-ups to lift $100k or extra (146, 29% of the continent), the quantity they raised was divided by 3 YoY (-67%) to achieve $410m, in comparison with $1.2b in 2022, and $1.7b in 2021. In consequence, its share of Western African funding continued to drop to achieve 68%, down from 85 % in 2021, and 77 % 2022.
“That is the bottom regional share of any Huge 4 market since we began amassing the info in 2019. In fact, although it represents solely 13 % of the funding, there’s a wealth of exercise past the Huge 4. Encouragingly, 29 % of the start-ups that raised $100k or extra in 20213 had been situated exterior the Huge 4,” it stated.
