Over the span of seven years, Nigerian start-ups, totalling 383 in number, secured a total funding of $2,068,709,445, marking the highest amount raised by start-ups from any country during this period.
As reported by Disrupt Africa in its ‘African Tech Startups Funding Report,’ funding for Nigerian start-ups has been on the rise, both in terms of the number of start-ups securing funding and the total amount raised.
Total investment has seen significant growth, increasing more than four-fold between 2020 and 2022.
Nigerian start-ups, while impressive in terms of funding, rank third in successful exits, with 15 ventures acquired since 2015. This number falls behind South Africa and Egypt in terms of successful exits.
In the third quarter of 2023, African tech start-ups raised a total of $492 million in funding, bringing the year-to-date total to $1.4 billion. Nevertheless, this figure represents a 48% decrease compared to the previous year.
The data from the report indicates that while Africa has seen increased investment over the past two years, the challenging global investment climate is also affecting African businesses.
Analysis by itweb.africa of the report revealed that in 2022, a total of $3.3 billion was raised, marking a significant increase of 55 percent from 2021 when investments amounted to $2.1 billion.
Disrupt Africa has predicted that this year is likely to see a decline in investment levels, following the global trend. The $1.4 billion raised so far this year represents a 48 percent decrease compared to the same period last year.
According to the company, African tech start-up funding is expected to be down 54 percent year-on-year.