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Kenya Beats Nigeria in Value of Startup Funding in H1 2023

Kenya Beats Nigeria in Value of Startup Funding in H1 2023

Kenyan startups received $520 million in funding in the first half of 2023 to overtake Nigeria as the country with the highest startup funding in Africa, according to a report by Briter Bridges.

Egypt, as per the report, came in second with $510 million in the same period while South African startups attracted $400 million to come in third in the ranking.

Rwandan startups came in fourth having received $330 million while those from Nigeria received $280 million to occupy the fifth position.

However, the report shows that Nigeria had the highest number of startup funding deals with over 100 disclosed deals while Kenya, South Africa, Ghana, and Egypt had 80, 60, 35, and 15 respectively.

In terms of distribution of startup funding across the continent, Kenya, Nigeria, Egypt, and South Africa received over 75% of the startup investment funds, signaling the now continued imbalance.

Overall Startup Funding Declines 

According to the report, the African startup has experienced challenges raising funds in the first half of 2023 as compared to the same period last year, with the publisher adding that investors are getting skeptical about the viability of investing in startups.

Deal activity, the report added, is also on the decline, with the majority of deals happening at the incubator and accelerator 


The report further notes that investors have lately focused on late-stage and early-stage startups as opposed to growth-stage startups.

“The volume of funding dropped by 26% from H2 2022 to H1 2023 and has largely been on a downward trend in 2023,” part of the report read.

“Deal activity slowed in the first six months of 2023 except June where 6 accelerator and ESO programs announced new cohorts.”

Fintech Startups Remains Most Funded 

In terms of the most attractive sectors, the report shows that fintech startups have maintained their lead as the most attractive sphere in the ecosystem having received a whopping $840 million and accounting for over 38% of the funding in H1 2023.

However, the investment in fintech startups, as per the report, has declined from $1.2 billion raised in 2022’s first half to the $840 million raised in the first six months of 2023.

Cleantech companies, logistics, commerce, and health startups also emerged among the most funded sectors $530 million, $65 million, $25 million, and $390 million respectively.