3.2% increase in funding raised by African AI/IoT startups

3.2% GROWTH IN FUNDING RAISED BY AFRICAN AI/IOT STARTUPS - REPORT

African Artificial Intelligence (AI) and Internet of Things (IoT) startups raised more money last year than they did last year, research by tech startup publication Disrupt Africa has shown. According to Disrupt Africa’s African Tech Startup Funding report, 397 African tech startups raised $701.5-million in funding in 2020. Of the 397 startups, 10 startups raised a combined $11,6-million. In contrast, in 2019, 10 AI and IoT startups raised $11,3-million.

Another report by research firm Briter Bridges estimates that $1.07-billion in disclosed funding, as well as $243-million in undisclosed funding was raised by African startups in 2020, this while mergers and acquisitions account for another $1.12-billion. According to Briter Bridges, 7% of this funding activity went into the data and analytics industry, accounting for about $98-million.

Some of the noteworthy deals involving AI and data analytics startups in 2020 include:

- Capacitech’s R2,5-million investment in GotBot (SA)

-Y Combinator’s $150 000 seed investment in Tambua Health (Kenya)

-Naspers Foundry’s R100-million investment in Aerobotics (SA)

-Knife Capital, Industrial Development Corporation of South Africa, and Norman Group’s $6-million Series-A investment in Data Prophet (SA)

-Saviu Ventures, Kalon Venture Partners, and Compass Venture Capital’s $1.6-million round in FinChatBot ai