JULY 01, 2022

3 min Read

A juicy June sees startups cross $3bn VC funding mark this year

In June, African startups from 14 different countries secured a total of $439 million in venture capital investments across 66 fully disclosed deals, per data from Africa: The Big Deal, a newsletter that tracks venture capital investments in Africa. 

This marks a meager 0.45% increase from the previous month when $437.1 million was raised while the number of deals rose by 26% from 49 transactions recorded in May.

However, on a year-on-year basis, Africa saw a +169% increase in the value of VC funding last month, compared to the $163 million received in June 2021. By deal count, there was a +27% increase, from 52 in June 2021 to 66 deals last month.

Over $3 billion raised so far in 2022

On a year-to-date basis, African startups raised $3.141 billion across 468 deals within the first six months of 2022, an impressive +139% increase when compared to H1 2021 investments estimated at $1.314 billion through 344 deals in H1 2021 (+36%).

In addition, Africa recorded a 123% YoY growth in venture funding in Q2 2022 having raised $1.3 billion from April to June, compared to $582m in Q2 2021.

MNT-Halan’s $150 million debt round was the largest mega-deal (>$100m) recorded and also the largest disclosed funding deal in June, just ahead of the $100 million Series C round bagged by MFS Africa and way above Ghana-based Fido’s $30 million raise. 

The top three rounds accounted for 64% of total funding raised in June and are followed by South African energytech Yellow Africa’s $23 million raise and Moove Africa’s $20 million debt funding from British International Investment (BII).

Major takeaway – H2 2022 Outlook 

The minimal increase in venture capital poured into Africa when comparing May and June suggests the ongoing global VC slowdown may be spreading to the continent. 

Africa was the only region to maintain 3-digit year-on-year growth in the first quarter of this year: investments in African startups grew +150% YoY in Q1 2022, the fourth consecutive quarter of 3-digit growth. Whereas both the US and Asia saw negative YoY growth and figures in Europe and Latin America were up over 30%.

“June 2022 was the ecosystem’s strongest June ever in terms of fundraising. Q2 2022 was the ecosystem’s strongest Q2 ever. H1 2022 was the ecosystem’s strongest H1 ever,” The Big Deal says in its report.

Attention now turns to the third quarter of the year. Amid the bear markets, founders say it’s become harder to raise capital as valuation conversations get tougher. But there’s a sense Africa’s venture funding landscape could chart its own course, different from the global trend.

If this rate of funding activity is maintained, the continent’s tech ecosystem could end the year with around $7 billion, or more, in venture capital raised.

Want to stay up to date on venture investing in Africa? Join our waitlist to receive a weekly newsletter and get a chance to invest in Africa’s most promising companies when daba goes live!

07 Therapy
4g Capital
4IR
5G
A16Z
Abidjan
africa
Africa Health Holdings
Africa Wealth Report 2022
African Crypto
African Startups
African Tech Weekly Recap
africanstartups
AfricInvest
Africxa
afrique francophone
Afya Rekod
Agency Banking
Agritech
AI
Airtel
Airtel Africa
Algebra Fund
Algeria
Allianz
amazon
Amitruck
Ampersand
Angel investing
Angola
Anka
Antler
app launch
appetito
AR/VR
ARM Labs
Asaak
AutoCheck
Autochek
Ayoken
Bamba
BasiGo
Bboxx
Benin Republic
Betacube
Betastore
BGFA
Big Cabal
Big Cabal Media
Binance
BioCertica
Bitcoin
Bitpowr
Bitvice
Black founders
Blink Pharma
Bloc
Blockchain
Bloom
Bluewave
BNPL
Bolt
Boolt
Bosta
Bostwana
Boxconn
brazil
Burkina Faso
Buy Now Pay Later
Cairo
Cameroon
Cape Town
CAR
CarePoint
Carry1st
Carscan
Cartsnshop
Casava
CASF
Catalyst Fund
Catlog
CBDCs
Chan
Chan Zuckerberg
ChanZuckerberg
Chargel
Chari
Chefaa
Chooya
Churpy
Circle
Cleantech
Clickatell
CloudFret
Codecademy
Coinbase
communique de presse
Consumer Credit
Copia
Cote d'Ivoire

This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients. Daba is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.

Other News

SEPTEMBER 12, 2022

16 min Read

African Tech Weekly Recap: September 12 to September 16, 2022

SEPTEMBER 10, 2022

16 min Read

African Tech Weekly Recap: September 5 to September 9, 2022

SEPTEMBER 05, 2022

4 min Read

Startup funding showed signs of a slowdown in August