Venture capital investment in Africa soars to record levels in 2020

A recent study conducted by African Private Equity and Venture Capital Association (AVCA) has revealed that the total volume of venture capital deals recorded in the continent rose from 140 in 2019 to 319 in 2020. 

The two most attractive sectors for venture capitalists are finance and information technology, attracting 22% and 18% of the deal volume respectively.

In the report, which captured investment data starting from 2014 to 2020, AVCA analyzed Africa’s investment activities, specifically venture capital deals, and the details about investors who took part in the deals. 

The report also features an in-depth study of some of the most prominent deals in East, North, and Central Africa.

The economy of Africa is rising on the wings of new and innovative startups whose products and services have broadened the scope of the market and created ample opportunities for rewarding investments. Despite how difficult the year has been, startups still raised over US$1.1 bn. The volume of deals completed in 2020 alone accounts for more than one-third of the entire 933 deals recorded from 2014 to 2020.