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Funding for African start-ups slowed for the first time after nearly 10 years of growth as investors in the fledgling tech scene were put off by the Covid-19 pandemic, according to venture capital firm Partech Partners.
Companies on the continent raised US$1.43-billion (R21-billion) in 2020, down 29% from a year ago, Partech Partners said in a report. Just two deals above $50-million closed last year compared to 10 in 2019.
“There were hardly any mega-rounds in the African tech ecosystem,” the Paris-based firm wrote in its annual survey of start-ups that have most of their operations in, or get the bulk of their revenue from Africa. “This sharp drop clearly marks the impact of the pandemic and subsequent lockdowns.”
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African startup investments fall for first time in almost a decade
As investors in the fledgling tech scene were put off by the Covid-19 pandemic, according to venture capital firm Partech Partners.
By Helene Fouquet and Loni Prinsloo, Bloomberg
11 Feb 2021 13:52
Image: Supplied
Funding for African startups slowed for the first time after nearly 10 years of growth as investors in the fledgling tech scene were put off by the Covid-19 pandemic, according to venture capital firm Partech Partners.
Companies on the continent raised $1.43 billion in 2020, down 29% from a year ago, Partech Partners said in a report. Just two deals above $50 million closed last year compared with 10 in 2019.