Nigeria among top destinations for tech start-ups

Nigeria, Africa’s largest economy, ranks amongst top destinations for tech investors in 2015, both in terms of number of deals and total amount of funding.

According to the African Tech Startups Funding Report 2015 launched last Thursday by Disrupt Africa, 125 tech start-ups raised $186 million around the African continent within the year.

South Africa, Nigeria and Kenya were investors’ favoured destinations in 2015, with 36 percent of the all start-ups raising funding in South Africa, 24 percent in Nigeria and 14.4 percent in Kenya.

South African start-ups generated $55 million throughout the year, while Nigerian start-ups received over $49.4 million, with the average Nigerian start-up raising more than the average South African equivalent, and Kenyan start-ups receiving over $47.4 million.

“There is so much happening in this space, but often the level of innovation has not been matched by the amount of funding on offer. This data is important, as it demonstrates that African start-ups are being backed by investors both at home and abroad,” said Gabriella Mulligan, co-founder of Disrupt Africa, as reported by Forbes.

“We fully expect this figure to be larger next year, and hope this research proves a useful starting point in understanding and growing the ecosystem,” she said.

Mulligan said Africa’s tech start-up ecosystem was becoming increasingly vibrant, with more quality tech start-ups and more investor activity than ever before.

Tom Jackson, co-founder, Disrupt Africa, said the numbers were only the tip of the iceberg when it came to the amount of funding received by African tech start-ups, as there would have been many more rounds that have taken place quietly.

“Nonetheless, the numbers are impressive. That is because the opportunity is so large. Solar start-ups are helping provide power to 620 million Africans that currently lack it,” Jackson said.

“Fintech solutions are playing a huge role in bringing financial services to millions who have previously not had access to means of saving and borrowing. Tech is changing the continent, and investors are seeing the opportunity,” Jackson said.

Josephine Okojie