The SGB Sector in 2017

Investing: West Africa

In the past decade, 48 percent of vehicles launched in West Africa focus on agriculture

Number of Investment Vehicles launched

In 2017, the number of tech start-up deals rebounded from 2016 as average deal size declined by 67 percent

  • Deals
  • Average Deal Size

Nigeria accounts for 18 percent of all start-ups to raise funding Africa-wide, with 29 start-ups successfully raising funds. This represents a 53 percent increase from 2016, when 19 Nigerian ventures received investment, but is a slight decrease from 30 ventures receiving investment in 2015.

Nigerian start-ups raised a total of US $23.3 million in 2017, representing 12 percent of the total funds raised in Africa. The average investment size decreased by 67 percent to US $805,000 from US $2.4 million in 2016. Between 2015 and 2016, the average deal size increased by 40 percent from US $1.6 million. In 2017, the increase in the number of start-ups fundraising and the steep decrease in average ticket size is a promising sign for funding available for early-stage ventures [12].