Friday, June 9, 2023
Techgist Africa | Africa Leading Tech News, Reviews and Tips
  • News
    • World News
    • World Regional News
    • News – East Africa
    • News – West Africa
    • News – South Africa
    • News – Middle East And North Africa
  • The Big 5
  • Specials
  • Opportunities
  • Innovators
  • Events
  • Videos
  • Contact
No Result
View All Result
Techgist Africa | Africa Leading Tech News, Reviews and Tips
  • News
    • World News
    • World Regional News
    • News – East Africa
    • News – West Africa
    • News – South Africa
    • News – Middle East And North Africa
  • The Big 5
  • Specials
  • Opportunities
  • Innovators
  • Events
  • Videos
  • Contact
No Result
View All Result
Techgist Africa | Africa Leading Tech News, Reviews and Tips
No Result
View All Result
Home Specials Reviews

Undisclosed Funding Rounds, the Trend for African Startups 

Joy Uche by Joy Uche
10/27/2020
in Reviews, Specials
0 0
0
undisclosed fund
0
SHARES
Share on FacebookShare on Twitter

In 2019, we were unable to ascertain the total amount raised by African startups since most of the funding rounds were undisclosed. Rather, we reported the African startups that received funding above 20 million in 2019. 

Similarly, WeeTracker, Partech, and Disrupt Africa also attempted to solve the riddle, using the rounds recorded in Nigeria, Kenya, and Egypt but came up with totally different figures with a hundred-million-dollar difference. Although all three had different parameters for categorizing startups, in most cases, only a few technical writers are privy to the exact figures raised during a funding round.   

Partech and WeeTracker, for instance, wrote a report of startups that included confidential investment data of startups. Undisclosed funding rounds makes it more difficult to accurately measure venture funding in the African tech ecosystem. 

There have been cases where startups across the continent fail to report funding rounds for the fear of government regulations and restrictions. A typical lesson can be learned from the case of motorcycle-hailing startups in Lagos, Nigeria.  

In 2019, OPay raised $170 million over two consecutive Series B rounds, MAX.ng secured $7 million led by Novastar Ventures, while Gokada raised $5.3 million. Shortly after demanding for motorcycle hailing startups to pay N25 million annual licensing fee for every 100 bikes, and an additional N30,000 for each registered bike rider, the Lagos State government still banned commercial motorcycles from plying major routes.  

Although the government blamed it on the high statistics of okada-related (commercial motorcycle) accidents, the majority believe that it was because the motorcycle-hailing startups did not agree to pay the fees. The majority of the motorcycle-hailing companies had to either leave the state or use their bikes for intra-state delivery services. 

Sadly, undisclosed investment in African tech startups has become a trend that has come to stay. Annual funding reports will continue to report differently until the government becomes friendlier with the tech community. 

This does not mean that post-seed level startups will stop announcing their funding round to signal to potential investors and the general public pre future rounds. Whether funding rounds are disclosed or not, there is still room for investments in the African startup landscape. 

ShareTweetShare

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
Joy Uche

Joy Uche

Related Posts

Apple WWDC23 Tim Cook
Events

Here is everything Apple unveiled at WWDC 2023

by Tech Gist Africa
06/07/2023
0

Apple's biggest and most anticipated Worldwide Developers Conference (WWDC) ever commenced with a revolutionary keynote at Apple Park, which was...

Read more
Regulatory Tech Africa

Analyzing the regulatory climate in several African countries from the perspective of the technology sector

05/22/2023
Mobile Technology

The Impact of Mobile Technology and Social Media in Africa

04/17/2023
ChatGPT Chatbot

Here is all you need to know about ChatGTP, the AI chatbot that is changing the game

03/06/2023
Nigeria Cashless Economy

Is Nigeria ready and willing to transition to a cashless economy?

02/27/2023
Next Post
internet tanzania

Tanzanian Government Allegedly Blocks Internet Access Ahead of Elections 

Big 5 Tanzania

The Big 5 Daily

Toriola MTN

Karl Toriola to Become CEO of MTN Nigeria by March 2021

No Result
View All Result

The Big 5

African Banker Awards 2023

The winners of the African Banker Awards for 2023 have been announced

by Tech Gist Africa
06/01/2023
0

...

Egypt Entrepreneur Awards 2023

The third annual Egypt Entrepreneur Awards selected 35 finalists

by Tech Gist Africa
06/01/2023
0

...

ygap South Africa’s accelerator 2023

The ygap South African Accelerator program is now accepting applications

by Tech Gist Africa
06/01/2023
0

...

Regulatory Tech Africa

Analyzing the regulatory climate in several African countries from the perspective of the technology sector

by Tech Gist Africa
05/22/2023
0

...

Africa Food Prize

The $100,000 Africa Food Prize is now accepting applications

by Tech Gist Africa
05/18/2023
0

...

TGA

  • About us
  • Terms and Conditions
  • Privacy Policy
  • Contact

TGA

  • About us
  • Terms and Conditions
  • Privacy Policy
  • Contact

AFRICA

  • Made In Africa
  • People
    • Tech Leaders
    • Innovator of the Week
  • Start-Up Spotlight

NEWS

  • Africa News
  • World News

THE BIG 5

  • Big 5 Daily
  • Weekly News Roundup

SPECIALS

  • Guest Articles
  • How Tos
  • Op-Eds
  • Reviews
  • Tech Leaders
  • Tips

VIDEOS

  • Interviews
  • Tech Videos

TGA

  • About us
  • Terms and Conditions
  • Privacy Policy
  • Contact

AFRICA

  • Made In Africa
  • People
    • Tech Leaders
    • Innovator of the Week
  • Start-Up Spotlight

NEWS

  • Africa News
  • World News

THE BIG 5

  • Big 5 Daily
  • Weekly News Roundup

SPECIALS

  • Guest Articles
  • How Tos
  • Op-Eds
  • Reviews
  • Tech Leaders
  • Tips

VIDEOS

  • Interviews
  • Tech Videos

Copyright © 2020 Techgistafrica. All Rights Reserved

No Result
View All Result
  • News
    • World News
    • World Regional News
    • News – East Africa
    • News – West Africa
    • News – South Africa
    • News – Middle East And North Africa
  • The Big 5
  • Specials
  • Opportunities
  • Innovators
  • Events
  • Videos
  • Contact

Copyright © 2019 TECHGISTAFRICA. All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.