By Milcah Tanimu

In the realm of startup funding for the first half of 2023, Kenya and Egypt have taken the lead, outpacing Nigeria in terms of funding value.

Highlighted within the report, the top-performing countries include Kenya with a funding sum of $520 million, Egypt with $510 million, South Africa with $400 million, and Rwanda with $280 million.

Nigeria, securing $280 million in funding, secures the fifth position on the continental scale in terms of funding value.

However, Nigeria emerges as the leader in the number of deals initiated across the continent, with a total of 101 deals.

Kenya has concluded more than 80 deals during this period, followed by South Africa with over 60 deals, Ghana with more than 35 deals, and Egypt with more than 15 deals in the first half of 2023.

The report underscores the initial six months of 2023 as a period marked by considerable challenges for startups and investors engaged in fundraising endeavors.

This is notably apparent as the overall funding for startups across the continent experienced a decline, totaling $1 billion in the first half of 2023. This figure stands in contrast to $1.5 billion in the latter half of 2022 and $1.8 billion in the initial half of 2022.

“The volume of funding witnessed a decline of 26% from the second half of 2022 to the first half of 2023, showcasing a consistent downward trajectory throughout the year. This trend reveals that investors have shifted their attention from growth-stage startups to both late and early-stage ventures.”

The report also highlights the unfortunate outcomes of these challenges, as numerous startups have been forced to close down. Additionally, numerous funding entities struggled to secure their intended closures.

Furthermore, several entities were compelled to lower their valuation expectations and make substantial reductions to their workforce.

As the first half of 2023 concludes, the total capital infused into Africa’s startups has surpassed a remarkable threshold, surpassing the $20 billion mark across a span of 15 years.

According to the publishers, “While this indeed marks a significant milestone, it arises at a time when individuals within the investment and innovation ecosystem are pondering over the future landscape of investment in Africa.”