2020 Africa Tech Venture Capital Report by Partech

This is a summary report of Africa Tech venture capital by partech. Let me share just critical points and trends in the African VC market.

https://partechpartners.com/2020-africa-tech-venture-capital-report/

(*Compared with another VC report, Partech report is different in terms of the point that they only include equity funding rounds higher than US$ 200k.)

- 359 equity rounds (+44% YoY)

- total VC funding of US$ 1.43B (-29% YoY)

- average growth ticket size (-60%)

Despite a strong growth in activity, the total amount raised by African startups decreased for the first time after nearly a decade of accelerating growth.

The activity level has increased for almost any deal below the US$ 50M size. (Deals between US$ 200K and US$ 1M have actually almost doubled.)

On a monthly basis, it stands out that, despite the crisis, African startups raised more equity

rounds on every single month of 2020 compared to that same month in 2019.

Seed+ really takes off , with deal count growing +80% YoY to 228 deals(almost 10x over

5 years). In Series A with 86 rounds (+9% YoY) and US$ 447 Million (-5% YoY), while

Series B stage sees 29 rounds (+16% YoY) representing US$ 449 Million (-8% YoY).

African VC investment remains centered around 4 top countries attracting 80% of the volume

invested.

Fin-tech is still the leading vertical with 25% of funding (despite -57% YoY drop in volume) but the 2020 highlight is on the rising investment in the digitization of key economic sectors with Agri-tech (US$ 179 Million), Logistics & Mobility (US$ 157 Million), Off grid/Energy (US$ 148 Million) and Health-tech (US$ 141 Million).