African startups raised $4.65bn in disclosed funding last year; 62 per cent of which went to fintechs African startups last year raised a whooping $4.65 billion in disclosed funding rounds.
This is according to the latest Africa Investment Report which was published by research and intelligence firm, Briter Bridges.
According to the report, the amount raised is twice as much as the total volume that was raised by African startups in 2020.
The report said there was also a 25 per cent increase in the total number of deals last year compared to the number of deals that were announced in 2020.
The report explained that some of the funding deals that were sealed last year were not disclosed.
Therefore, factoring in all these undisclosed deals, the report noted that an estimated sum of $4.9 billion was actually raised in 2021. As many as 240+ deals were not disclosed.
The report was compiled using data gathered by analysts at Briter Intelligence, as well as information provided by investors and founders.
While commenting on the report, the Director of Briter Bridges, Dario Giuliani, said the huge capital raise last year was indicative of Africa’s growing attractiveness as an investment destination.
“Approaching $5 billion in known funding in 2021, especially after nearly 24 months since the COVID-19 pandemic began, is a clear sign that Africa is undergoing tangible changes, and the increasing presence of local exits and returns is shaping the continent’s attractiveness,” he said.
Startups in the following African countries received much of the funds in 2021: Nigeria, South Africa, Kenya and Egypt.
The top 20 deals of 2021 captured 65 per cent of the total funding volume.
