Ghanaian startups the 5th largest recipient of funding from VCs; attracts $111m in 2020
Ghanaian startups are the 5th largest recipient of funding from Venture Capitals on the African Continent.
Data from German research firm, Statista, reveals that startups in Ghana attracted a total of $111m in funding from VCs for the year 2020.
Nigeria, for the review period emerged as the most attractive destination (and continues to remain so due to the budding tech startup scene) for investments from VCs.
Startups in Nigeria for the year 2020, attracted investments worth $307m from VCs.
Closely behind Nigeria was Kenya which attracted VC investments amounting to $305m.
Egypt, South Africa, Rwanda, Uganda and Morocco came in third, fourth, fifth, sixth and seventh place respectively.
The aforementioned countries attracted $269m, $259m, $11.6m, $11.3m and $11.2m respectively.
Cumulatively, startups on the Continent, according to Statista, attracted a total of $1.28bn in private equity investment.
A venture capital (VC) is a private equity investor that provides capital to companies with high growth potential in exchange for an equity stake.
This could be funding startup ventures or supporting small companies that wish to expand but do not have access to equities markets.
VC funding to Africa hit $5bn in 2021
According to the ‘African Private Capital Activity Report’, total value of private capital deals in Africa reached a record high of $7.4 billion in 2021, representing a 118% increase compared to the $3.4 billion registered in 2020.
The record amount was almost double the $4 billion that was invested on an annual average basis in Africa between 2016 and 2020.
The report found that 54% of the total deal value reported in 2021 were venture capital investments.
AVCA’s ‘Venture Capital in Africa Report’, released alongside the private capital report, found that 604 African startups had raised a total of $5.2 billion in 2021.
