Only Nigeria and three others secured funding for startups exceeding $100 million threshold in 2023, a report by a tech platform, TechCabal Insights, has said TechCabal Insights noted this in the Q4 edition of its State of Tech in Africa Report.
The others are Kenya, South Africa and Egypt.
The report added despite a 79 per cent dip in funding, fintech was the most funded sector, showcasing its resilience in challenging times.
The report, which dissected trials and triumphs of the past year, noted 2024 looks good for the industry in most areas.
But it noted African startups faced harsh realities in 2023.
“In contrast, eight nations achieved this feat in 2022. Venture Capital witnessed a substantial 40.2 per cent decline from 2022, prompting resilient entrepreneurs to explore alternative funding avenues. Despite a 79 per cent dip in funding, fintech was the most funded sector, showcasing its resilience in challenging times,” the report said.
The report also explored growth and adaptation strategies, underscoring the pivotal role of mergers and acquisitions as a lifeline for startups.
“Notably, 2023 witnessed the largest acquisition deal, with fintech leading the charge. Multimarket models and strategic pivots are dissected, offering valuable insight for investors seeking a strategic shift.”
Furthermore, the report delved into the regulatory framework shaping African tech, navigating the delicate balance between innovation and compliance. Examining digital identity, financial inclusion, cryptocurrency, open banking, anti-competition, and data protection, it provides a nuanced understanding of the regulatory landscape.
Also, on Tech Layoffs and Founders’ Outlook, a two-part survey presents primary data on the impact of tech layoffs on the workforce and outlines founders’ outlook for 2024, providing real-time insights into the sentiments within the tech community.
The report observed that with a forward-looking perspective, addressing uncharted terrain, the potential of bootstrapping in lieu of VC funding, imperatives for founders, investors, and policymakers, and prognoses for 2024 based on past trends.
The report is as a guidepost for navigating the evolving landscape of African tech in the upcoming year.
