Africa’s Most Mature Startups Felt the Toughest End of the Tech Funding Crunch of 2023

According to a new report by venture capital firm Partech, the average investment into African growth stage startups last year was $34.7 million for equity deals, 31% lower than in 2022. Africa’s reliance on foreign investors for large tech deals is due to the fact that few African private equity funds or venture capitalists are able to lead rounds of $100 million or more, a deal category sometimes called mega rounds.  Beyond funding capacity however, African startups have also sought out top global VCs to signal ambition and validate aspirations of global reach, while tapping into the VCs’ network of other companies and investors for sales and future exit plans.

SEMAFOR