{"id":4416,"date":"2022-10-21T12:15:00","date_gmt":"2022-10-21T11:15:00","guid":{"rendered":"https:\/\/ancstockinvestments.com\/blog\/?p=4416"},"modified":"2022-10-24T16:35:24","modified_gmt":"2022-10-24T15:35:24","slug":"venture-capital-african-startups-hit-7-billion-2022","status":"publish","type":"post","link":"https:\/\/ancstockinvestments.com\/blog\/2022\/10\/21\/venture-capital-african-startups-hit-7-billion-2022\/","title":{"rendered":"Venture Capital for African Startups to Hit $7 Billion in 2022"},"content":{"rendered":"\n
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In nearly every region, startups raised considerably less venture capital money in the second quarter of this year than the same period in 2021, Africa being the only exception. Between January and June, no other region even came close to matching the continent\u2019s funding growth.<\/p>\n

Should the half-year growth rate persist till December, 2022 will be a new record year for the amount of venture capital investment raised by African startups. The magic figure will be $7 billion, according to the African Venture Capital and Private Equity Association (AVCA), a group for investors in the continent. Last year was a record high of $5.2 billion<\/a>.<\/p>\n

AVCA\u2019s report tallied deals for the first six months of 2022, showing that $3.5 billion was raised by 300 unique companies in more than 440 deals. That dollar figure is just 1% of global VC funding within the period, a reminder that Africa still gets the bare minimum share of the world\u2019s startup funding largesse. At the same time, the doubling of the deal value over 2021 <\/strong>showed \u201cthe depth of opportunity as well as the potential the continent has to offer,\u201d the report said.<\/a><\/p>\n

What has driven African venture capital funding up?<\/strong><\/h2>\n

Globally, VC funding reduced by 3% in the first half of this year compared to last year, with the largest dips being in the second quarter, producing what some have deemed a \u201csilent crash.<\/a>\u201d Meanwhile Africa\u2019s increased by 133%. Why?<\/p>\n