The recent, and now past, venture capital boom was a global affair. While traditionally busy markets like North America and Europe benefited from the explosion in capital, other regions with more nascent startup scenes also saw big gains in their ability to attract funding. Southeast Asia is a frequently noted example of the phenomenon. Latin American as well.
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Africa also saw its venture capital totals soar during the last startup gold rush. In recent quarters, much like other startup regions around the world, African venture results have declined. In fact, March posted what was described as “the worst month in 2.5 years” for Africa, including “the first time the monthly amount of funding raised by start-ups in Africa dipped below the $100 million mark since 2020,” by The Big Deal, a publication focused on the venture and startup market on the continent.
Clearly, the quarter was a step backward. Naturally we wanted to better understand what was going on in one of the most exciting venture markets in recent years. So, this morning, The Exchange has collected two other data sources for us to chew on.
We know that deals are still getting done in Africa. TechCrunch recently covered a $4 million round for Shuttlers, which we described as a “Nigerian shared mobility company.” Chargel, based in Senegal, recently raised $2.5 million. But TechCrunch coverage of individual rounds is by definition partial when compared to all activity, so we’ll need to grapple with aggregates to ascertain a clearer image.
From a lower ceiling in terms of dollars raised, African startups’ slowing fundraising pace is bringing its quarterly results under the billion-dollar mark. That’s thin support for such a large, geographically diverse and increasingly digitally connected area.
Let’s talk venture results, unique issues to the African startup scene, and look ahead to see if we can spy any good news on the horizon.