< Previous50 edge_ may 2024 A frica is now known as a booming tech market and any booming region is known for its startups (After all, mighty trees grow from little seeds). However, the African tech landscape has witnessed lots of ups and equal downs. In 2023, the African tech landscape saw a shift from its record-breaking momentum of the previous year. Funding for startups declined (in both the number of funded ventures and the total capital raised), signalling a maturing market-facing global economic challenges. One significant trend observed in 2023 was the absence of leading global investors in later-stage funding rounds. This shift may be attributed to various factors, including heightened risk aversion in the wake of global economic volatility and a recalibration of investment priorities towards more established markets. The outcome of this trend is a more cautious investment landscape, with startups potentially facing greater hurdles in securing later- stage funding rounds. Despite the funding dip, 406 startups did manage to secure a combined total of $2.4 billion, a figure that still positions 2023 as a formidable year in the trajectory of African tech. However, the decrease in the number of funded ventures, down by 35.9 per cent from 2022, coupled with the decline in active investors, highlights the sector’s challenges amidst broader economic uncertainties. Regardless of these challenges, there are reasons for optimism within the African tech ecosystem. The continued growth in the number of funded ventures since 2015, although at varying rates, underscores the underlying potential and resilience of the sector. Moreover, the presence of active early-stage funds and accelerators signifies ongoing support for innovation and entrepreneurship in the region. Given the current scenario, stakeholders within the African tech ecosystem must adopt a collaborative approach to addressing the challenges posed by the evolving investment landscape. This involves fostering partnerships between startups, investors, and policymakers to create an enabling environment for innovation and growth. Additionally, efforts to diversify funding sources and attract a broader range of investors will be essential in sustaining the momentum of African tech in the years to come. In navigating these changes, resilience remains a key asset for African tech. While challenges persist, collective efforts to foster a supportive environment for startups and investors are crucial for long-term success. “One significant trend observed in 2023 was the absence of leading global investors in later- stage funding rounds” African tech startup landscape: Bear or bull market? By Arya Devi Commercial Editor, edge backlogthe voice of the digital revolution provocative. innovative. insightful. FOR COMMERCIAL ENQUIRIES Priyanka Pillai Group Commercial Manager T: +971 4 444 3399 M: +971 52 576 0260 E: priyanka.pillai@itp.com AN ITP MEDIA GROUP PUBLICATION www.edgemiddleeast.comwww.draytek.com sales@draytek.com Vigorous Networking Solution for SMEs 22th of May, 2024 Come seeNext >