Venture capital investment in Africa is headed towards another record year

In nearly every region, startups raised considerably less venture capital money in the second quarter of this year than the same period in 2021, Africa being the only exception. Between January and June, no other region even came close to matching the continent’s funding growth.

Should the half-year growth rate persist till December, 2022 will be a new record year for the amount of venture capital investment raised by African startups. The magic figure will be $7 billion, according to the African Venture Capital and Private Equity Association (AVCA), a group for investors in the continent. Last year was a record high of $5.2 billion.

AVCA’s report tallied deals for the first six months of 2022, showing that $3.5 billion was raised by 300 unique companies in more than 440 deals. That dollar figure is just 1% of global VC funding within the period, a reminder that Africa still gets the bare minimum share of the world’s startup funding largesse. At the same time, the doubling of the deal value over 2021 showed “the depth of opportunity as well as the potential the continent has to offer,” the report said.


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