Three charts showing how African startups raised $89.6M in November 2023

The African tech ecosystem has experienced a continual decrease in venture capital funding this year, with the decline linked to the global downturn in funding. This has consequently resulted in a rise in startup closures, employee layoffs, and valuation cuts.

This has led several analysts to question the existence of any unicorns on the continent. "Unicorn is a tall dream right now. We are more focused on profitability and staying alive," says Collins Iheagwara, co-founder and CEO of Simpu.

With the decrease in traditional venture capital, several startups are exploring alternative funding sources, while others have managed to secure funds through conventional means.

In November 2023, a sum of $89.6 million was raised by African startups through 17 announced deals, including four undisclosed ones. Per BD Funding Tracker, this represents a 42.63% decrease compared to the previous month's fundraising total of $156.2 million. Additionally, it reflects a significant 68.93% year-on-year decline from the $288.5 million raised in the same month last year across 19 deals.