Presenting the 2020 Partech Africa Report: The African Tech ecosystem continues to be accelerating with 359 equity rounds (+44% YoY) to an entire funding of US$ 1.43B (-29% YoY)
report 1.43b yoy, DAKAR, Senegal, PARIS, BERLIN & SAN FRANCISCO–(BUSINESS WIRE)–Proper this second, Partech Africa publishes its annual report on VC Funding for African Startups. Plainly, within the midst of the worldwide pandemic, the African tech ecosystem continues to be rising fast, with additional affords closed, and is getting a raise from the accelerated digitalization of foundational monetary sectors.
Further equity rounds in a tough 12 months
In 2020, additional startups have closed affords than in any earlier 12 months: 359 affords have been closed by 347 startups, in distinction with 250 rounds in 2019, i.e., a +44% progress YoY. One different very optimistic signal is the number of seed affords which massively accelerated, reaching 228 affords (+80% YoY). Enterprise ranges (Sequence A & B) are persevering with to develop (+11% affords YoY) no matter a traditional erosion of spherical sizes. Growth stage sees a low deal rely and a marked drop in ticket measurement (-60% YoY).
The outcomes of the worldwide catastrophe
Whatever the strong progress in train, the general amount raised by African startups decreased for the first time after virtually a decade of progress: the equity funding raised by African startups in 2020 totaled US$ 1.429 Billion, representing a -29% drop YoY. One different impression of the catastrophe was the drop inside the frequent deal measurement of African VC tech equity affords. The absence of mega-rounds explains to an vital extent the drop in funding amount.
The month-to-month breakdown displays that there was no clear and vital impression on train diploma attributable to the catastrophe and, really, every month of 2020 seen additional affords closed than the similar month in 2019.
A resilient ecosystem which already creates price
Merchants might need slowed down their processes, and founders delayed their rounds for larger events, nevertheless the ecosystem nonetheless benefitted from a raise and acceleration of digitalization of key monetary sectors, much like: Agriculture, Logistics & Mobility, Offgrid Vitality, and Healthcare.
- Nation breakdown: Nigeria stays the chief with US$ 307 million invested, whereas Egypt is first in equity deal rely with 86 affords: an +83% progress YoY. 4 worldwide areas attracted 80% of the quantity invested nevertheless 26 worldwide areas in entire have attracted capital.
- Sector breakdown: Fintech is the first in entire equity funding, with 25% of entire portions, nevertheless the highlight is the digital transformation of key monetary sectors with Agritech (US$ 179 Million), Logistics & Mobility (US$ 157 Million), Offgridtech (US$ 148 Million) and Healthtech (US$ 141 Million).
- Founder gender breakdown: Female-founded startups raised 13% of the rounds in 2020 – 4 components down from 17% in 2019 – nevertheless they accounted for 14% of the general equity funding, merely above 13% in 2019 (+8% YoY).
- Investor breakdown: Africa’s tech ecosystem simply is not solely attracting additional merchants (+24% YoY), nevertheless they’re moreover additional devoted to the market, with 108 of them involved in 2 or additional affords, and 22 very full of life in 5+ affords.
A safe methodology
The fifth Partech Africa annual report on African tech start-ups is based on the similar methodology as a result of the sooner years: it covers equity affords in tech and digital areas, and funding rounds elevated than US$200K.
Study the whole report on Partech’s website online.
Born in San Francisco and Paris, Partech is among the many most full of life VCs on the earth, bringing collectively capital, operational experience and strategic assist for entrepreneurs at seed, enterprise and progress ranges. In 2020, Partech invested in 82 startups all through 24 worldwide areas in Europe, America, Africa and Asia, and generated US$ 1.3B in combination exit price.
About Partech Africa
Headquartered in Dakar, Senegal, Partech Africa is crucial VC fund dedicated to experience startups in Africa. Partech Africa focuses on sequence A and B equity rounds in startups which might be altering the best way by which experience is utilized in coaching, mobility, finance, healthcare, provide, vitality, and so forth.