Post SA Investment Conference, AfricArena, Wesgro, and Silicon Cape Presents Deep-Dive into Tech Investment in Africa – African tech startups represent less than $50c per capita.
AfricArena, Silicon Cape and Wesgro host expert discussion and release research indicating funding raised by African startups to increase by 100%+, exceeding $1 billion for the first time.
Tuesday, 30 October, Cape Town – In the wake of the SA Investment Conference that took place last week, AfricArena, Wesgro and Silicon Cape hosted a press conference at the InvestSA One Stop Shop in Cape Town, making public new partnerships for the conference and discussing the role conferences and accelerators like AfricArena play in attracting investment to the continent.
Partech Ventures’ latest annual funding report shows that venture capital funding in 2017 reached $560 million, recording 53% year on year growth. South Africa, Kenya, and Nigeria dominate with 6% of total funding. Francophone Africa is accelerating with 14% of the deal transactions and financial inclusion (off-grid tech, fintech and insuretech) representing 45% of deals.
The track record shows the trend is that African tech entrepreneurs are raising more and more funding. Yet, the amount of investment going to African tech startups represents less than $50c per capita whilst in Europe the investment is $50 per capita in the USA $150. Currently, less than 1% of global tech investment is into Africa whereas on the global scene, in 2017 the USA attracted $74 billion, Asia $71 billion and Europe nearly $18 billion.
“If we are to create the next generation of successful entrepreneurs competing at a global scale – clearly the challenge remains as an input and output measure to increase the level of capita that African startups attract,” states Christophe Viarnaud, CEO of AfricArena and Methys. “It is predicted that in 2050 and 2100, there will be more than 50 cities with more than one million people on the African continent, and the majority of the most highly populated cities in the world will be in Africa. This is a very important factor in terms of being a fundamental underlying trend which is going to drive increased investment in Africa, therefore we foresee the investment in African tech startups to exceed the $10 billion annual mark in the next decade.”
Based on internal research conducted in 2018, AfricArena, Silicon Cape and Wesgro expect the funding raised by African startups to increase by 100%+, exceeding $1 billion for the first time and achieve $1 dollar per capita, positioning Africa as the fastest growing area in the world.
“Another interesting thing is the emphasis we put on taking our startups to the bigger stages outside of the continent,” adds Danai Musandu, Investment Associate, Goodwell Investments BV, “You always find more people rushing to go to Silicon Valley to go see where the big stage and the content is. But we need to have a change of perspective and a change of attitude, where people will say ‘We’re going to Africa, where the big stage of the future is’. The biggest barrier is our perspective and we need to change that perspective.”
AfricArena is a pan-African ecosystem accelerator whose mission is to help African startups access market and capital. The primary outcome measure is investment deals done around the event.
AfricArena 2018 announcements
-Over 70 startups from over 30 countries will attend, competing in 11 open innovation challenges
-In partnership with WeThinkCode, AfricArena will run a hackathon on a mobility challenge for the City of Cape Town
-EM Lyon, a world-ranked business school, joins as an academic partner and will stream AfricArena live on its Casablanca, Lyon, and Singapore campuses
-Over 100 investors from the US, Europe, Africa will attend or follow on the live streaming of the pitch sessions
-AfricArena announced a partnership with Deep Tech platform ‘Hello Tomorrow’
-Silicon Cape members to receive early bird special of 50% off AfricArena tickets.
-EM Lyon, an international business school priding themselves in “making entrepreneurs for Africa” will capitalize on the worldwide-recognized experience and quality of their programs and offer both students and corporations content that is tailored to their context and to their problems.
-HelloTomorrow organises mentorship programs and a series of events around the world, as well as educating and consulting relevant stakeholders on the emergence of deep technologies with the platform fast becoming a key reference in deeptech innovation and entrepreneurship. Sarah Pedroza, Managing Director of Hello Tomorrow, states: “Deeptech innovation happening today knows no borders. But the opportunities and resources to catalyze these solutions are unevenly distributed. We need to give better tools to deeptech entrepreneurs in ecosystems that are booming, connecting them to a global network of industry leaders, investors and policymakers in order to bring their concepts to market. We’re excited to partner with AfricArena, joining their flagship event in one of the biggest tech hubs in Africa, which is a great opportunity to bring key stakeholders together.”
Finalists for the internationally sponsored challenges
VINCE ENERGIES CHALLENGE – How to make energy more accessible in Africa thanks to energy efficiency solutions, energy flows optimization blockchain and/or AI – Rensource (Nigeria), BIG POT – Nigeria, Oniriq – Senegal
SAINT-GOBAIN CHALLENGE – A solution to upgrade professionals’ skills across Africa – Syafunda (South Africa), The Student Hub (South Africa), Ceed Learning (South Africa)
VIVATECH CHALLENGE – How AI can help generate a self-sustaining growth in the AgriTech industry – Agrocenta (Kenya), Homefarm (South Africa), Aerobotics (South Africa) AfricArena will take place on 15 & 16 November.
For more information on AfricArena or this press release, please contact:
Mika Stanvliet | email@example.com | 081 534 6237
Celebrated as the largest tech ecosystem accelerator on the African continent, last year’s edition of AfricArena saw more than 80 startups presenting to over 100 investors with 25 countries being represented and over $2M worth of deals done. The conference serves as a platform for the continent’s best startups and innovators to showcase their world-class talent in front of an audience of both local and international investors. AfricArena is the ultimate deal-flow platform, bringing investors and startups together in one central location.
The challenges run by AfricArena are sponsored by Vinci Energies, AirFrance, Engie, Sanofi, Leroy Merlin, the City of Cape Town and RCS. The conference is anchored and endorsed by corporate sponsors and partners La French Tech, Silicon Cape, Wesgro, SEDA, and will be covered by several media such as Techcrunch, Les Echos, Maddyness, Fast Company, and many others.
Caption for photo
From left to right: Danai Musandu, Investment Associate, Goodwell Investments BV; Alexis Grosskopf, COO & Centre Manager at French South African Tech Labs; James Milne, Head: Investment Promotion, Wesgro; Christophe Viarnaud, CEO of AfricArena and digital firm Methys; Thomas Pays, Co-founder and CEO, iPay; Kerry Petrie, General Manager, Silicon Cape; Thomas van Halen, Investor Relations and Research Lead, VC4A; Vuyisa Qabaka, Co-founder and Director, Uprise Africa