The recent and Now past, the venture capital boom was a global affair. While traditionally busy markets like North America and Europe benefited from the explosion of capital, other regions with more fledgling start-up scenes also saw big gains in their ability to attract financing. Southeast Asia is a frequent example of the phenomenon. Latin American too.
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Africa too saw his venture capital totals skyrocket during the latest startup gold rush. In recent quarters, like other start-up regions of the world, the results of African companies have declined. In fact, March published what was described as “worst month in 2.5 years” for Africa, including “the first time the monthly amount of funds raised by startups in Africa fell below the $100 million mark since 2020,” per The Big Deal, a publication focused on the company and startup market in the continent.
Clearly, the quarter was a step backwards. Naturally, we wanted to better understand what was happening in one of the most exciting risk markets in recent years. So this morning The Exchange has put together two other data sources for us to look at.
We know that deals are still being done in Africa. TechCrunch recently covered a $4 million round for Shuttlers, which we describe as a “Nigerian shared mobility company.” Chargel, based in Senegal, recently raised $2.5 million. But TechCrunch’s coverage of individual rounds is by definition partial compared to all activity, so we’ll have to deal with the aggregates to get a clearer picture.
From a lower ceiling in terms of dollars raised, the slow pace of fundraising by African startups is pushing their quarterly results below the $1 billion mark. That is scant support for such a large, geographically diverse and increasingly digitally connected area.
Let’s talk company results, the unique issues of the African start-up scene and look ahead to see if we can spy any good news on the horizon.
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