Microtraction 2023 Year in Review
Summary
The dynamics of capital inflow throughout the year underscore the resilience of the African tech ecosystem, and the modest recovery in the final quarter provides a glimpse of potential resurgence in fundraising activity.Examining equity funding by country, South Africa secured the largest share, raising $549M. Following closely, Nigeria secured the second position with $469M, Egypt with $433M, and Kenya with a total raise of $335M.The decrease in venture capital funding is not exclusive to Africa; it mirrors a global trend. January 2023 witnessed a drop to just under $40B, a figure that appears relatively optimistic when compared to the reduced amount of $19.2B collected in November 2023.In 2023, we celebrated our 6th anniversary as we continue to deploy from our second fund. This fund serves as a nexus for a community of leading investors; Angels, Operators, GPs, and LPs, each bringing specific subject matter expertise to support our founders in growing their businesses. During the retreat, speakers shared insights and explored the nuanced workings of operating a startup in Africa under topics like Culture and Hiring, BD and Partnerships, Founders Mental Health, Growth, Fundraising, and Corporate Governance.