In contrast to 2021 where VC funding recorded an impressive bull run which saw funding announcements becoming a daily norm, 2022 saw the sector hit hard brakes as venture capitalists became more conservative with the cheque-signing. However, according to a report by Africa: The Big Deal, Africa is on track to record more VC deals, by value, in 2022 than in 2021 when the trend seemingly peaked.
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| VC funds raised by African startups in 2019-2022 ?(Source: Africa:The Big Deal) |
According to Africa: The Big Deal, with one month to go until the end of the year, funding raised in 2022 has already surpassed the record established in 2021.
Start-ups on the continent have crossed the $1 billion mark in terms of funding raised earlier than ever before and also raised their first $2 billion faster than they ever had. The same applies to how they quickly reached the $3 billion and $4 billion milestones.
Africa: The Big Deal goes on to state that most of the 2022 funding came in Q1 and Q2 with the second half of 2022 having been much less dynamic than the first ($282m raised monthly on average in H2 so far, roughly half of the H1 average ($532m).
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Info source & credit: Africa: The Big Deal (Max Cuvellier)