Recent and In the past, venture capital growth was a global issue. While markets such as North America and Europe have traditionally benefited from the boom in capital, other regions with nascent scenes have benefited greatly from their ability to attract funding. Southeast Asia is an oft-cited example of this arrangement. Latin America as well.
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During the last gold rush, Africa saw its investment capital rise overall. In recent quarters, like other startup regions of the world, Africa’s venture output has declined. In fact, March was described as Africa’s “worst month in 2.5 years,” with Africa’s first round of fundraising falling below $100 million since 2020, according to Accord, a publication focused on the continent’s venture and startup markets.
Apparently, the quarterback was a step back. We want to better understand what is going on in one of the most exciting venture markets in recent years. And this morning the exchange gathered two more sources of information for us to chew on.
We know that deals are still being made in Africa. TechCrunch recently raised $4 million for Shuttlers, which we described as “Nigeria’s shared mobility company.” Senegal-based Chargel recently raised $2.5 million. But TechCrunch’s coverage of individual rounds is by definition partial compared to all activities, so we’ll have to wrestle with the totals to ensure a clearer picture.
Given the low ceiling of dollars raised, the slowdown in African startups’ fundraising pace is bringing quarterly results under a billion dollars. That’s thin support for such a large, geographically diverse and increasingly digitally connected area.
Let’s discuss venture results, issues specific to the African startup scene, and look ahead to see if we can spy any good news on the horizon.