Kenya Q1 2022 Venture Investment Report

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Venture Investment in Kenya over Q1 2022 with startup, industry, investor, and Exit breakdown

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The Q1 2022 Kenya Venture Report is one of MAGNiTT's flagship reports that provides a quarterly update on the venture capital and startup ecosystems in Kenya bench-marked with its peer EVMs.

Kenya has recorded a phenomenal quarter of funding beginning this year, rising up 3 ranks to become the second-most funded geography in Africa over Q1’21. Observing a quarterly and half-yearly record amount of funds, the Kenyan VC ecosystem was able to surpass capital investment in FY 2021 despite recording 62% fewer deals in Q1’22. Driven by 1 Mega Deal ($100M+) the Kenya ecosystem observed a 155% growth in funding since FY’21 to cross the $400M mark for the first time. 

Despite having the highest concentration of deals in the ($0k-$1M) bracket size, accounting for almost 50% of all transactions, larger round sizes ($20M+) recorded a 13PP YoY growth in their share of total transactions driving up the average round size in Kenya to almost $14M in Q1’22.

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Key Highlights - Kenya Q1 2022 Venture Investment Report

  • $401M was raised in venture funding in Kenya over the first quarter of the year marking a quarterly, half-yearly, and yearly record for this African ecosystem

  • 6 ($20M+) along with 1 Mega Round ($100M+) recorded in Q1'22 drove Kenya's average round size up by 450% YoY to average $13.8M in Q1 2022

  • Kenya was Africa's second-most funded and third-most transacting geography, accounting for 32% of funding and 15% of total transactions recorded in the first quarter of the year

  • Driven by B2B commerce startup Wasoko's $120M Mega Round the Retail sector accounted for 44% of total funding in Q1'22 while FinTech closed the lion's share of transactions accounting for 37% of total deals  

  • The 90 Investors that participated in funding rounds in Q1'22 were 11 more than FY'20 while boasting a 78% proportion of international investors

What’s In The Report?

This quarterly report provides a comprehensive overview and a deep dive into the country's venture capital and funding investment space and includes the following: 

• A 5-year analysis of Kenya venture funding evolution, with a focus on 2022 YTD country and industry performance benchmarks

• Top 10 investor ranking, together with the business type and HQ analysis of all investment firms in the region

• Top 10 startup funding rounds that were closed during the analyzed period, as well as the ticket size split of the entire deal flow

• A 5-year Kenya exit evolution with country benchmark breakdown

• Top 10 last exits by Kenya-based startups

Who will benefit from the report?

The Kenya Venture Investment Report is ideal for investors tracking startup activity, consultants looking to identify technology innovation trends, as well as government entities searching for investments.

This report was created with data from MAGNiTT, a comprehensive directory of technology innovation trends. The platform provides the following analytics tools:

• Investment directories, a comprehensive list of all startup venture funding across the Middle East, North Africa, Pakistan, and Turkey

• Market Sizing Tools to visualize investment growth and trends across industries, geographies, and stage

• Startup Resources including a deal flow tool for applications to leading Venture Capitalists for investment

• Exit comparisons, looking at Mergers & Acquisitions from across the region

 

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*This report aggregates and analyses tech startup investments in 17 countries in the Middle East and North Africa - listed alphabetically: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia (KSA), Syria, Tunisia, United Arab Emirates (UAE), and Yemen.

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