According to the Disrupt Africa’s African Tech Startups Funding Report for 2015, 125 tech startups raised funding in 2015 around the African continent, to the tune of US$185,785,500.
South Africa, Nigeria, and Kenya proved investors’ favoured destinations in 2015; with 36 per cent of the startups that raised funding based in South Africa, 24 per cent in Nigeria, and Kenya in third place with 14.4 per cent of deals.
The top three highest amounts of funding also went to these three locations. South African startups raised in excess of US$54,568,000 throughout the year; Nigerian startups received over US$49,404,000; and Kenyan startups brought home over US$47,365,000.
Of the 10 sectors monitored in the report, the solar sector saw the most investor activity, accounting for 32.9 per cent of total funds raised. The fintech sector proved a close second, securing 29.6 per cent of the total funds.
“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,” said Gabriella Mulligan, co-founder of Disrupt Africa.
“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,” said Tom Jackson, co-founder of Disrupt Africa. “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.”
The report also finds Egypt, Ghana, and Tanzania are key hotspots for funding activity; and provides detailed information for each country, including deals per location, average deal sizes and highlights key deals.