The H1 2023 Africa Venture Investment Summary reveals the impact of the economic challenges on the venture capital in the Middle East, Africa, Pakistan and Turkey (MEAPT) region and how these events are materializing further in Africa. For a deep dive into the continent, access the H1 2023 Africa Venture Investment Premium Report here.
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The first half of the year witnessed the Emerging Venture Markets amassing a total of $1,879M across 530 deals. This marked a substantial decline of 64% in funding and 40% in the number of deals compared to the corresponding period in the previous year. Examining the quarterly figures, Q2 of 2023 stood out as the quarter with the lowest funding since Q4 of 2020, while the number of deals had not reached this level since 2018.
In detail, MENA-based startups played a significant role in the overall funding, as the three MEGA rounds allowed the region to account for almost 57% of the total accumulated in H1 2023. Africa-based startups on the other hand, contributed with a share of 51% of MEAPT’s total funding.
This downward trend extended to the entire continent, as the first half of 2023 experienced a significant 54% annual decline in funding, with deals reaching only half of the number recorded in H1 2022. A closer look at 2023 reveals a contraction in activity month by month, with January to June each witnessing a year-on-year decline of more than 30% when compared to the corresponding months in 2022. The sole exception was February, where funding declined by only 8%, primarily due to a single deal exceeding $100 million closed by Egypt's Halan.
Following a notable influx of foreign investors in 2022, the interest of international investors in Africa became more restricted during the first half of 2023. In the initial six months of 2022, Africa attracted the participation of 519 investors. However, owing to the impact of global macroeconomic conditions and the collapse of major financial institutions, investor activity has experienced a sharp decline in the current year, resulting in an almost 50% reduction in the number of investors. In 2022, approximately 72% of the investors originated from outside the African continent. However, in the present year, the proportion of international investors has dwindled to 63%.
What’s In The Summary?
The latest half-yearly summary offers strategic insights into the Emerging Venture Markets (EVM) and focuses on the VC performance of the African continent. This report covers a 5-year analysis of EVM and Africa's venture funding evolution, with a specific focus on the country comparison and industry performance in 2023. You will get access to precious information such as:
Africa Venture Funding Evolution: Get an overview of the past five years, highlighting the growth and development of venture funding in Africa with a focus on performance in 2023.
Key rankings such as the Top 10 investors, Top 5 funding rounds, and 5-Year exit evolution of Africa.
Who is it for?
Whether you’re a private investor, a VC, an investment company, a CVC, or working in corporate, this report gives an overview of the ecosystem and caters to a diverse audience including any curious minds who want to use the yearly, quarterly, and monthly charts in this report to track investment activity.
You can also see in which country and industry the investment activity focused in terms of deals and capital deployed, allowing you to leverage insights and make wise choices.
The report can also be used by consultants looking to identify technology innovation trends and who will find it valuable to look at the evolution of M&A activity and concentration of acquirers/acquired startups.
Last but not least, government entities searching for investment opportunities will also find valuable information to make informed decisions.
Where is this information from?
The report was 100% created using data from MAGNiTT. MAGNiTT is the leading VC-verified data platform and offers a comprehensive directory of technology innovation trends. Our unique SaaS solution includes investment directories listing startup venture funding across the Middle East, Africa, Pakistan, and Turkey, and now Singapore. By using MAGNiTT, you will also get access to market sizing tools to visualize investment growth and trends across various industries, geographies, and stages, as well as comparison tools for benchmarking geographies, industries, and investor performance. Furthermore, MAGNiTT offers exit comparisons by examining mergers and acquisitions.
Learn more about MAGNiTT's Data Methodology.