African tech startups raised funding in excess of US$129 million in 2016, with the number of startups securing funding up by 16.8 per cent compared to the previous year reports Tech city.
The Disrupt Africa Startups Funding Report displays substantial growth in the number of startups to raise funding
as compared to the previous year, although the overall total amount of funding recorded declined.
Of the nine sectors analysed in the report, the fintech sector received the most backing in 2016, with startups in this space raising a combined US$31.4 million, 24 per cent of the overall total.
According to Tech city, the report also makes available data on the startup acquisitions which took place in 2016; as well as the results of surveys relating to preferences and trends within the entrepreneur and investor communities on the continent.
Tom Jackson , co-founder of Disrupt Africa said that “The general theme of 2016 has been more rounds, but with fewer standout tickets than in 2015. The African tech space has not been immune to the economic pressures faced by other sectors, but it is proving extremely resilient. The fact more startups raised funding in 2016 than ever before demonstrates the vitality of this sector, and we expect investor interest to grow and grow over the course of 2017,”
With such impressive numbers showing a increase from 2015 it is expected that this year tech startups will receive even more backing as the industry continues to grow exponentially with no sign of slowing down.