Startup Funding 2017 - Africa
People, money is dripping into Africa-focused startups. Last year, about $170 million was invested in 201 of such startups. Generally, the continent recorded 28% year-on-year on startup investment dollars while the number of startups which received funding grew by 32%.
Fintech leads all sectors while the NKS (Nigeria, Kenya and South Africa) were dominant on total deals. But note that not all deals are reported and also most of the companies classified as African companies are actually U.S.-based firms with (majorly) operations in Africa. Technically, as they succeed, Africa will benefit but the wealth will be shared somewhere outside Africa.
Real native African companies continue to struggle while the offshore African companies crack millions of dollars in funding. That does not mean it is all bad; I just want you to have that in mind as you look at the data. It remains tough to break-in from inside when it comes to raising capital as an African entrepreneur.
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A new trend started last year where the investors come with the money and ask you to RELOCATE all the team to Silicon Valley and then make the original African city a business development office. Very unfortunate: when the techies depart, we lose branches in the forest. Yet, investors have to do what they have to do. To change that, I have proposed a ten-year tax-free incentive to venture capitalists in Nigeria.
Nonetheless, congrats to all the guys that hit big: native and offshore African startups. Now, go and build the businesses.
Source: WeeTracker
