African startups’ fundraising trends have reverted to what we might call pre-COVID norms. In a nutshell: Startups on the continent raised less money in the third quarter of 2023 than they have since the end of 2020, according to The Big Deal.
The continent’s startups are not alone in their fundraising struggles. Canadian startups have been fighting to raise money, as have companies in India and the rest of the world.
But, there’s an interesting trend here: while it’s true that venture capitalists are holding on to their checkbooks around the world, it appears not every region is fighting equally hard. Mature venture markets like the United States and Europe are seeing less total venture investment, yes, but they are still far from reaching the kind of decline in funding that would make us worry if there’s enough capital in the market to fund a material sector.