Tencent technology news according to foreign media reports, in 2018, the African technology industry will become more dynamic and international. The number of venture capital companies on the African continent has doubled. Financing activities are increasing. Startups are also seeking acquisitions and global expansion. These are several key words of Africa's science and technology development in 2018: venture capital, global expansion, blockchain and UAV.
Surge in venture capital funds
According to relevant statistics, a noteworthy trend in 2018 is that the pattern of venture capital in Africa has become more African. There are more and more investment funds headquartered in the African continent and operated by local people.
CrunchBase, an enterprise service database company, found that there are 51 reliable venture capital funds focusing on Africa in the world, and each fund has invested in African start-ups at least 7-10 times.
Of the 51 funds, 22 (43 per cent) are headquartered in Africa and managed by Africans. Of the 22 funds, 9 (41%) have been established since 2016, and 9 are from Nigeria.
Four of the nine Nigerian funds were established last year: microtraction, neon ventures and beta Growth capital fund of ventures and cchub.
CrunchBase's research also tracked the rise of more Africans holding senior positions in foreign funds and the venture capital sector of local enterprises.
One of the companies with a venture capital department is naspers, which announced the establishment of a $100 million fund called naspers foundation to invest in science and technology start-ups in South Africa. This is part of the South African media and investment company's commitment to invest US $300 million to support the development of South Africa's science and technology industry.
The French Development Agency (AFD) announced the establishment of a $7.6 million venture fund for Africa.
Investment and expansion
If the news of venture capital in Africa was rare 10 years ago, we were overwhelmed by such news in 2018. This is largely the result of the use of its funds by several recently established African funds, including $40 million tlcom fund, $70 million Partech fund and $2 billion TPG fund.
In March this year, Nigerian consumer data analysis company terragon raised $5 million from the tlcom fund. Africa's talking, a Kenyan business enterprise software company, raised US $8.6 million in a round of financing activities led by the International Finance Corporation (IFC).
Invest in piggybank Ng received $1.1 million in seed funds and launched a new product smart target. Kobo360, a freight logistics company, carried out two rounds of financing activities, with a total financing amount of US $7.2 million. Twiga foods, a Kenyan based AGTech supply chain startup, raised $10 million. Sokowatch, a B2B retail supply chain, ended a round of $2 million seed financing led by 4DX ventures.