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🚀 Howdy fellow data enthusiasts!
Happy new week guys! Long time no newsletter! I hope you have missed me just as much as I have missed you! As usual, I hope you have a fruit-bearing and easy week ahead.
As promised, I come bearing good news; drumrolls please!
The highly anticipated in-depth analysis of H1 of 2024 in African VC is finally here! I suggest you grab your favorite drink, find a cozy spot and let's unravel the journey and magic that was H1 2024!
For any corrections or additional insights, please feel free to reach out to us via victoria@weetracker.com
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African VC activity witnessed a significant slowdown in the first half of 2024. Compared to H1 2023, which saw a robust USD 1.28 B invested across 206 deals, H1 2024 recorded a mere USD 643.75 M secured through 174 deals. This represents a sharp decline of roughly 50% in funding and a 15% drop in the number of deals. The slowdown can be attributed to global economic uncertainty impacting investor risk appetite and a potential shift in focus towards specific sectors or later funding stages.
Nonetheless, African startups showcased remarkable resilience in H1 2024, with Investment reaching over 20 regions, and even smaller, emerging markets entering the game!
While for a long time, Nigeria has been the biggest VC player in Africa, thanks to its large population and strong economy, a new champion is emerging; Kenya! Fueled by investor confidence, Kenya's startups raised more money (USD 220.15 M) in H1 2024 than Nigeria (USD 150.94 M), despite Nigeria recording more deals (42 vs. 35).
Beyond the Big Four, French and North African countries are gaining traction. Together, they secured 15 deals worth 4.56% of total investment in H1 2024, with Morocco (5 deals), Senegal (8 deals), and Tunisia (2 deals) leading the way.
H1 2024 also witnessed the emergence of smaller, evolving markets, signifying a maturing African VC ecosystem where capital is increasingly flowing beyond traditional hubs. Tanzania and the DRC each recorded 4 deals, while Zimbabwe, Zambia, and Togo marked their debut with 1 deal each.
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FinTech remains Africa's top-funded sector, securing USD 237.64 M across 35 deals in H1 2024 (36.92% share).
However, a closer look reveals a potential shift. Compared to H1 2023's USD 902.59 M (49 deals), total funding for FinTech dropped significantly (roughly 73.7%). While deal volume remains relatively consistent, this funding disparity, suggests a potential recalibration of investor appetite within the FinTech space.
Nigeria secured the most funded FinTech startups (16) and funding amount (USD 127.4M). While Egypt had the second-highest number of deals (7), Kenya led in total investment (USD 53.25M across 4 deals) in second place.
Notably, Nigeria's Moove (Mobility FinTech) secured a combined USD 110M (Series B & Debt), accounting for a significant 46.29% of Africa's H1 2024 FinTech funding.
Mobility surged as the 2nd-highest funded industry (USD 131M) in H1 2024, with Kenya leading the charge (6 deals). This aligns with Kenya's booming EV market (18-20 companies) fueled by government support and attracting new entrants.
CleanTech & Renewables (USD 67.94M) placed third, followed by Agritech (USD 42.96M) and HealthTech (USD 40.27M). Interestingly, Egypt led HealthTech deals (5), while Kenya dominated AgriTech (7 deals) and Renewables (8 deals).
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Most Active Investors In H1 2024 |
Launch Africa, Renew Capital, Catalyst Fund, and the U.S. International Development Finance Corporation (US DFC) emerged as top investors in H1 2024, highlighting continued VC interest in Africa.
Launch Africa, boasting the most funded startups and participating in deals exceeding USD 9.5 M, spearheaded VC activity. This surge follows their 2022 launch of a USD 36.3 M seed and pre-Series A fund, offering ticket sizes between USD 250 K and USD 300 K.
Additionally, Catalyst Fund, focused on climate resilience innovation, actively invested in 9 African Climate Tech startups after closing their first USD 40 M fund targeting 40 pre-seed ventures in 2023. Targeting mission-driven local and women founders, Catalyst Fund prioritizes solutions in agritech, fishery management, food systems, insurtech, climate fintech, cold chain, waste management, and water management.
Notably, startups from Kenya secured most funding across various sectors, with a particularly strong presence in Mobility and AgriTech.
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An intriguing shift is underway in African VC, with Debt funding emerging as a growing trend. H1 2024 saw a significant USD 179.1 M (27.82%) secured through Debt deals (10).
Notably, the Mobility sector played a key role, contributing 12.43% of this figure (USD 22.1 M) through strategic deals. Examples include USD 10 M debt facilities secured by electric vehicle companies Roam, BasiGo, and Mogo Kenya (all from the U.S. DFC), alongside Benin's Spironet securing USD 50 M from the African Export-Import Bank.
Equity rounds still dominated deal volume (75 deals, exceeding USD 78 M), with FinTech leading the charge.
Notably, Nigeria's Moove emerged as a major player, securing a whopping USD 100 M in a Series B round. This significantly boosted Series B funding, making it the second-highest funded stage.
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Here's what happened in the African VC scene between 24th June and 3rd July, 2024.
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Egypt Takes Spotlight Funding
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Last week, emerging markets Namibia and DRC made cameos in the funding chart.
Egypt however dominated the chart, with South Africa marking its usual spots.
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African Startups Raised USD 19M+
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Last week, African startups secured over USD 19 M+ across 4 deals.
Fintech startups took the funding limelight, with Agritech, edutech following closely in second.
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Egyptian Fintech Connect Money Raises USD 8 M Seed
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Connect Money, an Egyptian banking-as-a-service fintech company, closed its seed funding round of USD 8 M.
The round will enable Connect Money to launch five new business verticals that will be announced separately in North African markets.
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Fintech Company Cadana Raises USD 7.1 M Seed
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Fintech startup Cadana secured USD 7.1 M seed funding to revolutionize remittances for African professionals.
Cadana specializes in simplifying payroll processes for a variety of clients, including talent marketplaces, staffing firms, and human resources providers.
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Spark+ GP Announces Second &, Third Closings Of Spark+ Africa Fund
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Spark+ General Partner announced the second and third closings of Spark+ Africa Fund, with a current AUM of USD 64 M.
In the fund’s second closing in July 2022, the European Commission invested in the catalytic tranche via a partnership with IFU, the development finance institution of Denmark and a first closing investor on its own behalf.
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