Nigeria, SA, Kenya accounts for 75% tech funding
by FRANK ELEANYA
February 15, 2018 | 9:15 pm| | | Start Conversation
Seventy five percent of the total funding that come into the African technology space goes to three countries, namely South Africa, Kenya, and Nigeria.
This was disclosed by panellists at the Africa Tech Summit that took place in Kigali, Rwanda. The summit started on Wednesday and ended Friday, February 15, 2018.
The majority of funding goes to start-ups providing financial technology (Fintechs) services according to a January 2018 report by Disrupt Africa. In that report, it was shown that 45 fintech start-ups raised almost one-third of the total funding going to African tech ventures in 2017.
Despite the growth in funding, Ido Sum, Partner at TLcom TIDE, who spoke on a panel focused on ‘The Investment Landscape Opportunity’ in Africa, noted that accessibility remains a challenge for most African tech start-ups. Many of the start-ups often realise it is a longer process than they originally imagined. Often, investors will demand to know how the African innovators plan to expand their businesses.
Hence, he advised that start-ups should focus on solutions that they are passionate about, not just things that are being hyped.
“Go for spaces where there are problems that you know about. Do not chase the ‘next hot idea’ space. Start with a problem and start with an expertise,” he said.
Marieme Diop of Orange Ventures stressed the need for small businesses to clearly differentiate between venture capital and private equity.
“Innovators need to do their research before seeking funding for their business,” she said.
Access to funding does not necessarily mean a startup is going to be successful, according to Karanvir Singh, CEO of Yego Moto.
“We need to tell these children the truth about technology. Not all apps that get created will make money. But in the same breath we need to use technology to solve problems in our rural areas,” Karanvir said.
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