In the first half of 2023, African tech startups experienced a significant drop in funding, with a total of US$1.19 billion raised. This marks a decline of over 50% compared to the corresponding period in 2022, highlighting the continued influence of the global economic climate on investment in the sector.

According to the recently released African Tech Startups Funding Report, compiled by Disrupt Africa in partnership with Flat6Labs, MarketForce, 4Di Capital, Mercy Corps Ventures, Newtown Partners, and InsiderPR, a total of 633 African tech startups secured a combined funding of US$3,333,071,000 in 2022, showcasing remarkable growth. The number of funded startups increased by 12.2% compared to 2021, while the total funding saw a substantial 55.1% surge from the previous year.

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However, this year has witnessed a regression in line with the global investment landscape, often referred to as the "reset" following a period of significant expansion. In the first six months of 2023, only 131 African tech startups secured funding, amounting to a total of US$1.19 billion, compared to 303 startups and US$2.275 billion raised in H1 2022. This represents a decline of 52.4%, consistent with the quarter-on-quarter figures from Q1, which saw a decrease of 57.2%.

Considering that last year's H1 accounted for approximately half of the startups and total investment for the entire year, if the current trend persists, funding for 2023 is projected to decrease by more than 50% compared to the previous year.

Culled from Disrupt Africa