(Ecofin Agency) - West African startups have started 2021 on a good note in terms of fundraising operations. Over the first three months of the year, they mobilized a total of $231.7 billion through 34 financing rounds. Figures were revealed in a recent report published by Baobab Insights.
Although funding levels have not yet reached those of 2019, before the covid-19 crisis, the mobilization in Q1 2021 reflects a significant increase from the $62.2 million in 41 funding rounds completed in Q4 2020.
The majority of the funding was raised by a single company, Nigerian fintech Flutterwave, which raised $170 million in March 2021 through Series C funding and became an African unicorn with a valuation exceeding $1 billion.
Fintech, healthcare technology companies, and transportation and logistics companies were the three most sought-after industries by investors in the region during the period. The report also reveals that these investors were more likely to provide funding between $500,000 and $5 million and reduced investments below $500,000.
This growing number of larger deals may be an indication of a maturing ecosystem with a high frequency of subsequent funding rounds, Baobab Insights says.