- About Startup Genome
- About Global Entrepreneurship Network
- About Our Global Partners
- A Note From a Founder
- A Note From Global Entrepreneurship Network
- The State of the Global Startup Economy
- Ecosystem Lifecycle Analysis
- Global Startup Ecosystem Ranking 2023 (Top 30 + Runners-Up)
- Emerging Ecosystems Ranking
- Strong Starters Ranking
- Global Startup Sub-Sector Analysis
- Insights, Rankings & Ecosystem Pages
- The Historical Spirit of Amsterdam Lives on in Its Thriving Startup Scene
- Bold, Curious, and Unafraid: Estonia Is Where Startups Get Started
- Adaptation & Resilience: First-Hand Insights Into the Ukrainian Startup Ecosystem
- Insights, Rankings & Ecosystem Pages
- How a Diverse Range of Tech Startups Is Flourishing in New Zealand
The Global Startup Ecosystem Report 2023
Insights, Rankings & Ecosystem Pages
Sub-Saharan Africa increased 227% in early-stage funding amount and 43.8% in early-stage deal count from 2018 to 2022, highlighting the rapid development of the region’s tech startup scene.
Unprecedented amounts were invested in sub-Saharan tech startups in 2021, and while some other regions struggled to get close to their success of the previous year, funding in sub-Saharan Africa decreased only slightly in 2022. Early-stage funding declined 5.9%, early-stage funding amount by 6.7%, the number of Series B+ deals was equal, and Series B+ amount fell just 3.7%. Overall, sub-Saharan Africa remained significantly above pre-2021 levels. Looking at the longer term, the region was up 227% in early-stage funding amount and up 43.8% in early-stage deal count from 2018 to 2022, highlighting the rapid development of sub-Saharan Africa’s tech startup scene.
Fintech is the highest performing sub-sector in sub-Saharan Africa, comprising 41% of total technology startup deals in the period 2018–2022. Nairobi is a hub of tech innovation and particularly known for Fintech. The region’s biggest exit and second biggest deal in the GSER 2023 timeframe emerged from the ecosystem: Payments startup DPO was acquired by Network International in 2021 for $291 million and Sun King, which produces solar home systems, raised $499 million in total VC funding, including a total of $330 million in Series D rounds in 2022.
Sub-Saharan Africa’s biggest deal came in the form of Lagos-founded Fintech OPay’s $400 million August 2021 Series C. Additionally, Lagos-founded Fintech Flutterwave raised a $250 million Series D in February 2022, taking its valuation to over $3 billion. The Nigeria Startup Act, developed in 2021 and signed into law in October 2022, aims to create clear regulations that will help further boost the nation’s tech ecosystem.
Key Findings
- No sub-Saharan ecosystems made it into the top 30 + runners-up ranking, but this doesn’t mean the region is without significant activity. Sub-Saharan Africa was up 227% in early-stage funding amount and up 43.8% in early-stage deal count from 2018 to 2022, highlighting the rapid development of the region’s tech startup scene.
- Nairobi produced the region’s biggest exit and the second biggest deal also emerged from the Kenyan ecosystem: Payments startup DPO was acquired by Network International in 2021 for $2.9 million and Sun King, which sells, installs, and finances solar home systems, has raised $577 million over nine rounds, with its latest a April 2022 Series D round of $330 million. Nairobi’s Ecosystem’s Value is up an impressive 281% from from July 1, 2019–December 31, 2021 to July 1, 2020–December 31, 2022.
- Lagos held its place in the 51–60 range of the Emerging Ecosystems ranking. OPay’s $400 million Series C in August 2021 was the region’s biggest deal, while Flutterwave’s $250 million Series D in February 2022 saw its valuation increase to over $3 billion.
- Cape Town has entered the top 100 Emerging Ecosystems for the first time, in the 91–100 category and aided by a 23% increase in Ecosystem Value, a 26% growth in the count of early-stage deals, and 22 new Life Sciences disciplines.