By Jeph Ajobaju, Chief Copy Editor
African startups raised $1.16 billion in funding in the first half of 2021 (H1 2021), more than double the amount invested in them in H1 2020 and H1 2019 combined, according to data from Catalyst Fund at BFA Global.
Mapping the Money published by Maxime Bayen, Senior Venture Builder for Catalyst Fund at BFA Global, shows that 80 per cent of the funding was raised by startups headquartered in one of Africa’s ‘Big Four’ – Nigeria, Kenya, South Africa, and Ghana.
South Africa raised 28 per cent of the sum and Nigeria 27 per cent, and each received $300m+ as both countries towered above others to scoop more than half of all funding raised.
Notable funding rounds were closed by Kuda, Flutterwave, Termii, Kwik, Bankly, and Appzone. Fintech Flutterwave led with $170 million in Series C to become the third payments unicorn in Africa, per Nairametrics.
Startups with all-male founding teams got 77 per cent of the funding and female CEOs 14 per cent, up from 2 per cent in H1 2020.
Fintech most funded
Fintech remains the most funded with its startups receiving nearly half (48 per cent), a share higher than in previous years.
Local investors were active in H1 2021 with 40 per cent of them involved in more than one deal. Of the 369 investors involved in at least one $100k+ deal in Africa this year, 110 (30 per cent) are headquartered on the continent.
The United States had more investors (133) involved in one deal in Africa than Africa itself but they were less active than investors based in Africa who accounted for 87 per cent of those who participated in one deal.
Nearly $150 million was raised by African startups in the first 10 days of H2 2021, raising hopes of greater funding by year end.
