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The Number of Global Venture Capital Firms Active in Sub Saharan Africa

General

The number of global venture capital firms active in Sub-Saharan Africa has increased sharply in the past decade.

This is according to a recent report by the research firm Venture scanning, which found that the number of firms had increased from just 11 in 2009 to 72 in 2018.

The report also found that the total amount of money invested by these firms had grown from $160 million in 2009 to $2.7 billion in 2018.

The majority of these firms were based in the United States (38%), followed by China (19%), the United Kingdom (9%), and India (6%).

The increase in the number of firms active in the region is in line with the growing interest in Africa’s startup ecosystem.

A number of African startups have managed to attract significant investment in recent years, with a number of them even becoming “unicorns” (startups with a valuation of over $1 billion).

Some of the most successful African startups include the ride-hailing firm Uber, the payment company M-Pesa, and the e-commerce platform Jumia.

With the continent’s population projected to grow to 2.5 billion by 2050, and the middle class expected to reach over 1 billion people, there is immense potential for growth in the African startup ecosystem.

Venture capitalists are well aware of this potential, and the influx of firms into the region is a reflection of this.

However, it is important to note that the majority of venture capital investment in Africa is still concentrated in a few countries.

According to the Venture scanning report, only four countries – South Africa, Nigeria, Kenya, and Ghana – accounted for 87% of all venture capital invested in the region in 2018.

This means that there is still a lot of room for growth in other parts of the continent.

There are a number of reasons why Africa has been attracting increasing interest from venture capitalists.

Firstly, the continent is home to a large and young population, which is expected to grow significantly in the coming decades.

This provides a large potential market for startups to target.

Secondly, the economic growth rates in many African countries have been very impressive in recent years.

This has led to an increase in the number of people with disposable incomes, which provides a larger market for consumer-facing startups.

Lastly, the improvement in infrastructure and the increase in mobile and internet penetration have made it easier for startups to reach their target markets.

All of these factors provide a very favorable environment for startups to flourish.

As the startup ecosystem in Africa continues to grow, it is expected that the number of venture capital firms active in the region will continue to increase.

This will provide even more opportunities for entrepreneurs to create successful businesses and drive economic growth in the continent.

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