Funding African startups increased by almost four times in 2018, underlying the continent’s increasing uptake of business and information technology, the 2018 venture investment report by WeeTracker shows.
According to Quartz Africa, WeeTracker indicates that African startups raised a record $725.6 million across 458 deals, with the report adding this reflects increasing investor confidence in startup businesses across the continent’s major hubs.
Fintech startups received the most investment in Africa in 2018, WeeTracker’s report shows.
Across 93 deals, fintechs accounted for 40% of total funding raised and also accounted for five of the top ten largest deals.
In total, 30 startups raised individual rounds higher than $5 million in 32 deals valued at $626.9 million.
WeeTracker’s report shows 25 Africa-focused funds—a mix of institutional investors, venture capital, grants and prizes—launched last year with a total capital pool of just over $1 billion.
In line with previous years, Nigeria, South Africa, and Kenya—the continent’s most advanced and valuable tech ecosystems—continue to dominate as the continent’s leading investment destinations while the hot streak of fintech companies across the continent will likely be reflected.
This is a big increase compared to 2017 when investment into startups in Africa hit $195m.
According to the African tech startups website Disrupt Africa, the number of startups in Africa to raise funding hit 159 in 2017, up from 146 companies in 2016. In 2015, the number of startups in Africa to raise funding was 125.