Startups in Africa’s three leading tech entrepreneurship markets—South Africa, Nigeria and Kenya—raised the most funding in 2016, like the year before. But this year, the total raised on the continent fell by 30.5% to $129 million, according to data collected by Disrupt Africa, from $185.7 million in 2015.
Ultimately, African startups will need more grassroots support, both from customers and investors. The expansion of interest by local and African diaspora angel investors, through organizations like African Business Angel Network (ABAN), is a promising sign of what’s possible.
Anecdotally, you can see from the press releases and announcements that are made, that much of the later stage funding for the tech ecosystem on the continent comes from outside. Names like Bill & Melinda Gates Foundation and Omidyar Investments and others are backing many of the later stage stars of Africa’s startup scene.
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