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Egypt ranks 4th in African VC market

The list of the top VC destinations includes Nigeria, South Africa, Egypt and Kenya respectively. The four account for 70% of African VC market.
28.01.23 | Source: Tech Crunch

As VC activity slowed down globally last year, Kenya defied odds to record the strongest growth in funding raised in Africa. Reports show that the deal count and value to the country surpassed 2021 figures owing to increased investor interest.

Data from market intelligence firm Briter Bridges, and The Big Deal shows Kenya raised $1.1 billion, more than double the funding that East Africa’s biggest economy got in 2021, when the continent raised about $5 billion.

Another report by Partechwhich excluded Sun King’s mega round, also shows that Kenya’s funding spiked by 33% last year, to a record $758 million.

Partech placed Kenya fourth in the list of the top VC destinations after Nigeria, South Africa and Egypt, respectively. The four markets account for over 70% of the total VC funding in Africa.

Briter, which included country ranking this year, and Big Deal positioned Kenya as second in VC destination after Nigeria, which took the lead after raising $1.2 billion, despite the deal number and value dropping. When compared to the previous year, the amount invested in Nigeria dipped by over 36%, according to Partech, and 20% as per Big Deal’s data. South Africa’s funding stagnated as per Partech while Big Deal data shows a 42% decline.