Why Africa had no unicorns ultimate 12 months no matter doc fundraising haul

Africa, bucking world developments, raised additional VC {{dollars}} in 2022 than 2021. Nonetheless its unicorn document stayed stagnant

2 min readJan 12, 2023

The African tech scene was met with fanfare in 2021: Enterprise capital investments inside the space totaled between $4 billion and $5 billion and produced 5 unicorns. In my piece detailing this progress, I predicted there may very well be additional unicorns in 2022. These predictions proved to be methodology off the mark by 12 months’s end.

Data from market insights trackers Briter Bridges and The Huge Deal reveal that funding raised by African startups exceeded $5 billion (along with undisclosed provides) in 2022 — a slight share improve from the figures reported in 2021 no matter a worldwide pullback in VC funding. And however, no unicorns popped up all yr lengthy, as compared with 5 in 2021.
That fact might sound insignificant because of, on the end of the day, private valuations don’t go an exact examine till startups go public. However, producing no unicorns no matter elevating additional enterprise capital suggests it’s possibly too early to think about African markets are mature adequate to continuously come out private billion-dollar firms like their World South counterparts: India, Southeast Asia and Latin America.
That acknowledged, 2022 was peculiar. The worldwide monetary downturn and enterprise capital crunch ensured that every space produced fewer billion-dollar firms than the sooner 12 months. Globally, 216 unicorns had been minted in 2022, per Tracxn, as compared with 541 inside the earlier 12 months. In India, 22 firms grew to turn into unicorns ultimate 12 months, as compared with 46 in 2021. Whereas 18 firms in Latin America purchased their horns in 2021, that decide fell to simply eight ultimate 12 months.
In distinction to Africa, these areas raised methodology a lot much less enterprise capital in 2022 than in 2021, so it’s smart that their unicorn numbers dropped. For example, in India, the number of unicorns dropped by larger than half as VC exercise dropped by 33%. Latin America and Southeast Asia moreover witnessed a double-digit decline in VC funding ultimate 12 months as compared with 2021, though the drop in unicorns signifies additional hurt.




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