The rise of startups originating from Africa showcases the continent’s growing presence in the global technological landscape, contradicting negative portrayals by the media. Nigeria stands out as a leader in this movement, with significant advancements in technology.
In the first quarter of 2024, African startups raised a total of $466 million, although this marked a 27% decrease from the previous quarter and was only half of the amount raised in the same period of 2023. Moove, a Nigerian mobility startup, secured the most significant funding, raising $110 million, primarily from a $100 million Series B round led by Uber.
The transport and logistics sector led in total funding, largely due to Moove’s substantial deals, followed closely by fintech. Fintech, however, claimed the top spot in deals surpassing $100,000, with Agri & Food ranking second. ClimateTech also showed promise, representing a significant portion of both deals and total investment.
Equity funding dominated the disclosed funding, comprising 71%, while debt accounted for the remaining 29%, although the amount of disclosed debt halved between Q4 2023 and Q1 2024.
Despite these advancements, funding still predominantly favors male-founded and male-led ventures, with very little allocated to startups lacking at least one male founder and only a small percentage directed towards female CEOs. Notable exits in the last quarter included HRtech PaySpace’s acquisition by Deel and fintech nCino’s acquisition of DocFox, both in South Africa.
