A seismic shift has rocked the African venture capital scene, and the tides have turned in favor of Techstars, making it the reigning champion of 2023. This news marks a significant departure from the previous two-year champion, Launch Africa, signaling a new era for the growing African tech ecosystem.
Let’s dive into the numbers that paint this transformative story. Techstars has claimed the throne with an impressive 56 deals executed across Africa in 2023, leaving Launch Africa trailing with just 19 deals. The abrupt end to Launch Africa’s two-year dominance is evident in the substantial drop in their deal count for the year.
Competition
Adding spice to the mix, other notable players like Founders Factory Africa, Ventures Platform, and Catalyst Fund have joined the ranks of prominent investors, highlighting the increasing diversity within the African venture capital landscape. This diversification is indicative of a maturing ecosystem, providing startups with a broader spectrum of funding opportunities.
Regional outlook
Zooming in on the regional front, East Africa, spearheaded by Kenya, emerges as the powerhouse with the highest number of funded startups. Kenya’s dominance in the region has skyrocketed from 86% in 2022 to a staggering 91% in 2023, solidifying its grip on East Africa. Meanwhile, Egypt, South Africa, and Nigeria haven’t lagged behind, attracting substantial investor attention and showcasing the diverse potential of various African markets.
What’s fueling this shift in the balance of power? One factor lies in Techstars’ global network and extensive experience. Leveraging its vast network of mentors and investors worldwide, Techstars seems to be strategically identifying and supporting promising African startups. On the flip side, Launch Africa may be adopting a more selective approach, concentrating on fewer ventures with higher potential.