Funding for start-up companies in the technology space was nearly $185.8 million in 2015, according to research by website portal Disrupt Africa. More growth is expected in 2016.
According to the data in Disrupt Africa African Tech Startups Funding Report 2015, the top 3 places where tech investors were backing new businesses were South Africa, Nigeria and Kenya, both in number of deals and amount. Most funding went into solar power (33%), followed by fintech (financial services firms using technology – 30%). The report monitors 10 sectors.
It says 125 tech start-ups raised funding in 2015. These were located 36% in South Africa, 24% in Nigeria and 14% in Kenya. Funding to South African start-ups totalled $54.6m, to Nigerian firms $49.4m and Kenyan firms received $47.4m. Other key places for funding included Egypt, Ghana, and Tanzania.
Gabriella Mulligan, co-founder of Disrupt Africa, commented on the website: “2015 was an exciting year for African tech startups. Our data shows the increasing vibrancy of our ecosystem, with more quality tech startups, and more investor activity than ever before. We’re very pleased to make our data available in the Disrupt Africa African Tech Startups Funding Report 2015, and trust it will contribute to understanding and growing the ecosystem.
He co-founder Tom Jackson added: “These are impressive numbers, showing real growth in the amount of funding available to African tech startups, but in reality they are merely the tip of the iceberg. There will have been many funding rounds across the continent that have taken place quietly. But in terms of demonstrating the development of the ecosystem, these figures are an excellent starting point. We expect to see further growth in 2016.”
Disrupt Africa describes itself as “Africa’s startup portal.. a one-stop-shop for all news, information and commentary pertaining to the continent’s tech startup – and investment – ecosystem”. The report provides detailed information for each country, including deals per location, average deal sizes and highlights key deals and is available here for $50.
Also check out the Fintech Africa awards event, due to be held in South Africa this October.