At the start of each new year, I take a moment to reflect on the past twelve months and share some of my thoughts in writing. 2019 was particularly notable given the dramatic increase in access to early stage funding across the continent. In 2017, I commented on how African startups raised more than $195M. A year later, in 2018, the number reached a record-breaking $725.6 million across 458 deals. However, even these numbers pale in comparison to the tremendous boost in early stage investment with African Startups raising $1.34 Billion In 2019. What can we expect in 2020?
Awakening
Dario Giuliani, founder of data-driven research company Briter Bridges said that 2019 was “the year of awakening for many African scenes”. I couldn’t agree more, as according to Maxime Bayen of GreenTec Capital, nearly 100 African early stage ventures attracted funding of a million dollars or more during the year. Additionally, we saw significant new pools of capital come online, for example:
● The €1B African fund launched by the German government as part of the G20 Compact with Africa initiative
● A $40-million fund from Australia-based firm Palladium to invest in agribusiness in Ghana, Kenya and Nigeria
● $23M pledged by Accion Venture Lab to focus on African fintech companies that focus on financial inclusion
