In the first half of 2023, African tech startups experienced a significant drop in funding, with a total of US$1.19 billion raised. This marks a decline of over 50% compared to the corresponding period in 2022, highlighting the continued influence of the global economic climate on investment in the sector.
According to the most recent edition of the annual African Tech Startups Funding Report released by Disrupt Africa, available free in partnership with Flat6Labs, MarketForce, 4Di Capital, Mercy Corps Ventures, Newtown Partners, and InsiderPR, 633 African tech startups raised a combined US$3,333,071,000 in 2022.
In the first six months of 2023, only 131 African tech startups secured funding, amounting to a total of US$1.19 billion, compared to 303 startups and US$2.275 billion raised in H1 2022. This represents a decline of 52.4%, consistent with the quarter-on-quarter figures from Q1, which saw a decrease of 57.2%.
This year is set to be a regressive one, however, in line with global trends in investment which is becoming known as the “reset” after tremendous growth that went before. In the first six months of 2023, 131 African tech startups have banked a combined US$1.19 billion, down from 303 startups and US$2.275 billion in H1 of 2022. That’s a decline of 52.4 per cent, which is in-line with the quarter-on-quarter figures from Q1, which fell by 57.2 per cent.
Last year’s H1 ended up accounting for around half the startups and half the total investment for the whole of 2022, so if the current trajectory holds then year-on-year funding looks set to decline by more than 50 per cent.
