This archive report was first published on 30 June 2020.
Kenya has emerged as a top destination for venture capital in Africa, attracting a significant share of financing for start-ups and small businesses with exceptional growth prospects over the past five years (2014-2019), according to a report by the African Private Equity and Venture Capital Association Ltd (AVCA).
Published on June 30, 2020, the report highlights South Africa's dominance in venture capital deals, accounting for 21% of the total early-stage investments, followed closely by Kenya at 18% and Nigeria at 14%.
Kenya's start-up scene has seen significant growth, with a focus on consumer discretionary, financials, and industrials. The country has also witnessed a surge in investments in the utilities sector, with a focus on alternative power solutions.
Financial technology (fintech) firms have dominated the African start-up scene, but afro-entrepreneurship has also grown within the utilities, logistics, transportation, e-commerce, healthcare, and agribusiness sectors.
According to the report, nearly one-third (32%) of the total number of early-stage investments reported in Africa in the period were seed stage deals, while Series A and Series B transactions accounted for 29% of the total volume and 38% of the total value of early-stage deals.
However, 65% of the total number of VC deals reported were below $5 million, while 25% were between $5 million and $20 million, and just 3% were above $50 million in size.
Corporate venture firms from North America played a key role in bridging funding gaps, accounting for 37% of the total number of corporate venture firms that participated in VC deals in Africa from 2014 to 2019.
