The East African Venture Capital Association (EVCA), a body that represents private capital providers including development finance institutions (DFIs), private equity and venture capital funds, family offices and impact investors among others that support businesses and enterprises across the region, released its report of PE and VC deals from its inception in 2013 to the first half of 2023. Over the past decade, Kenya has consistently claimed the majority of PE and venture capital deals in East Africa, accounting for a staggering 69% of the 478 PE and development finance institution (DFI) investments made between 2013 and the first half…
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Startups need funding to grow at a speed that they want. This funding usually comes in the form of venture capital which is raised from VC firms, angel investors and other programs in exchange for equity. Funding for African startups has been growing steadily. In 2016, African startups raised just $130m according to Partech. But by 2022, the funding had risen to $3.33bn as per Disrupt Africa which represents a growth rate of over 2000% within a seven-year period. But with funding, comes investor communications. As per Wimbart’s Startup Performance Reporting in Africa, only 71% of investors said they received…
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On a regular basis, tech publications are awash with stories of startups raising funding from investors, who more often than not, are venture capitalists. This type of funding is called venture capital, and it usually fills a void that most types of financing dont. But like every investor, VC firms have to make returns off their investment. So how do they do it? In this latest article of CEO East Africa explains, we will break down how a typical VC firm makes these returns. But first, lets understand what venture capital is. What is venture capital? Venture capital is a…
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2022 was a good year for startups in Uganda. Startups here raised $70m across that year according to Africa: The Big Deal data. Some of the standout deals that year included Rocket Health’s $5 million Series A and Numida’s Series A. If you have followed startup funding, you will notice the use of these terminologies (Series A, Seed round or Pre-Seed). In today’s explainer, CEO East Africa will do a deep dive into the startup funding round stages. But to understand the dynamics of startup funding rounds, one needs to delve into the essence of what a startup truly means…
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Startups raise funding for various reasons that are essential for their growth and success. Firstly, funding provides the necessary capital to support and accelerate the growth of startups. It enables them to invest in expanding their operations, hiring talented individuals, and scaling their business. By securing funding, startups can seize opportunities, penetrate new markets, and establish a competitive edge in their industry. Additionally, funding plays a crucial role in product development, allowing startups to invest in research and development, prototype creation, testing, and launching their offerings. This financial support empowers startups to bring their innovative ideas to life and deliver…
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As per Africa: The Big Deal, African startups raised $621.8 million from just 34 deals which makes it an average of $18.3 million per deal in May 2023. This is a 42% increase year-over-year from May 2022. On a month-over-month basis, funding grew by 379% from the 129.8 million that was raised in April. Startups raise funding for several reasons. Firstly, funding allows startups to fuel their growth and scale their operations. It provides the necessary financial resources to hire talented employees, develop and improve products or services, and expand into new markets. Additionally, startups often require capital to invest…
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Ugandan fintech, Zofi Cash, has raised USD 1 Million in a pre-seed round from Advancly. The funding round, which is purely debt, will see Zofi Cash extend its salary advance services to cover a waiting list of 20,000 employees. Zofi Cash was founded in October 2021 by Paul Kirungi, the CEO and Gordon Turibamwe as the CTO, a pair of Ugandans who returned to Uganda after a decade in the USA with a goal to end the 30-day pay cycle. “We partner with employers who want to extend this (salary advances) to their employees,” Paul tells CEO East Africa in…
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When Olga Kiconco finished her Bachelor’s Degree in Telecom Engineering at a university in Malaysia in 2013, she knew it was time to look for jobs. But when she came back to Uganda, she was hit by the innovation bug. She started a cyber security firm with a couple of friends. They set up shop at Hive Colab, and this is where she started diving a little bit deeper into the startup world. Unknown to Olga, this was not just a pitstop for her, but it would be her trade for the foreseeable future. Upon finishing her Master’s in International…
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Paul Graham, the founder of the highly influential Y Combinator accelerator program penned arguably his most famous essay in September 2012. In this essay, titled Startups = Growth, Paul Graham argued that startups are built to grow fast. “Being newly founded does not in itself make a company a startup. Nor is it necessary for a startup to work on technology, take venture funding, or have some sort of “exit”. The only essential thing is growth.” he argued. This mantra of hyper-growth is something that startups worldwide have followed to the dot, raising millions of dollars to capture as big…
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