Among its findings, the report reveals record investment in Africa-founded firms, and more indigenous, startup talent.

Global Private Capital Association has just released a new data report on African investment trends entitled African Startup Funding: Who is Getting Backed?

GPCA’s members manage more than $2 trillion in assets across Asia, Africa, Central and Eastern Europe, Latin America, and the Middle East.

The data reveals compelling themes: record investment in African VC firms, across more countries and to more local talent; and the number of women involved at the seed stage round is rising. However, traditional investment hubs, foreign educated and non-female talent still dominate.

The report found that investment in Africa is expanding beyond major hubs and into new geographies: 

-- In 2022, [GPCA members made] investments in 25 countries compared with 16 countries in 2019.     

-- Major markets (Nigeria, South Africa, Kenya, Egypt) attracted 67 per cent of deal value.

Record investment in Africa-founded firms, and more indigenous, start-up talent:   

-- African-led startups received a record $2.2 billion in 2022 (2019: $342 million);   

-- African-led startups with founders educated only in Africa raised $586 million – also a record;

-- But, startups with founders educated fully/partially abroad still dominate – $1.6 billion (73 per cent share).

Women’s involvement is almost on the rise: investments in female-led startups up 133 per cent on 2019 – but share of overall capital is unchanged:   

-- Startups with at least one female founder raised $365 million;

-- Investment in female startups is up most dramatically at seed/early-stage, but all-male teams dominate later rounds; and  

-- All-female founding teams only attracted 1 per cent of the total 2022 deal value.

VC investment in Africa grew to 44 per cent of total private capital deal value: 

-- Healthtech, e-commerce and Cleantech grew their respective shares; and 

-- Fintech still dominates deal flow: over $4 billion invested.