African startups attracted a record $3.5 billion (R62 billion) in venture capital investment in the first half of this year, bucking a global decline in dealmaking linked to worldwide economic turmoil, data released by an industry group showed on Tuesday. The funding, raised by 300 different companies, represents growth of 133% compared to the same period last year, according to the African Private Equity and Venture Capital Association (AVCA), which promotes private investment on the continent. Startups bounced back from a pandemic-induced dip in 2020 with a nearly five-fold increase in venture capital investments in 2021, though Africa still attracts a fraction of the funding levels destined for more developed markets. Globally, after hitting record levels last year, venture capital funding contracted in the second quarter of this year, with Latin America, Europe and North America hardest hit by the exodus of spooked investors. While venture capital funding in Africa increased during the second quarter, the rate of growth was slashed by more than half to 78% from a first quarter increase of 171%, according to the AVCA data.

Source: News 24 October 05, 2022 04:08 UTC