By 
Over the past five years, financial support for African tech start-ups has increased. Trust in local innovators continues to grow and attract investors who are aware of the opportunities of the digital economy on the continent.
According to the platform Africa: The Big Deal, Lauch Africa is one of the most active investors in financing start-ups in Africa. Since launching operations in mid-2020, this pan-African venture capital fund has spent more than $31 million on 133 deals, with more than one deal per week on average. The majority of financial transactions were between $100,000 and $300,000, with a median check of $250,000.
So far, 22 countries are at the heart of Launch Africa’s activity. Start-ups from four countries in particular Nigeria, South Africa, Kenya and Egypt alone have confiscated USD 21 million already invested by Launch Africa through 89 funding agreements.
Five other markets attracted more than $1 million: Ghana, Senegal and Côte d’Ivoire in West Africa; Tanzania and Tunisia. The investment team has also gone off the beaten track by identifying investments in often overlooked countries such as Togo, Sudan or Angola.
Fintech is the sector in which Launch Africa has invested the most with 42 deals (32%) valued at $11 million (36% of $31 million) across 13 markets in total. Nigeria accounted for 13 fintech deals.
Other sectors in which Launch Africa has also invested heavily are marketplaces, logistics, big data and healthtech, each attracting a financial total ranging from $3 million to $4 million for 15 to 20 deals. Marketplace, logistics and big data transactions were conducted in nearly 10 markets per sector. On the other hand, support for healthtech focused on 5 markets, with 7 transactions in South Africa.
Comments