As reported on the African Report, the assets under management are known for just a third of these firms.
Below is the breakdown:
50 firms are known to manage more than $1 billion, which is less than 10% of all firms
65 manage less than $1 million
40% of firms manage assets in the range between $1 million & $1 billion
It is now well established that financial technology (fintech) is the most attractive investment destination in Africa.
47% of deals already closed this year have been in the fintech sector.
As first reported on the Africa Report:
More than 200 firms have invested in financial services
IT, Healthcare, Energy, and Agriculture among the most attractive destinations of capital
In terms of regional focus, investment firms have made:
301 deals in southern Africa
230 in East Africa
212 in West Africa
90 in the North
68 in central Africa
A closer look at the report also reveals the size of these deals as follows:
23.5% of the investors operating on the continent typically invested between $1 – $5 million
21% invested between $5 – $10 million
21% preferred to invest $10 million cheques
14% preferred investing under $1 million
4.5% made $100 million investments
With $3.3 billion invested in 2020, 2021 is on course to be another breakout year for African startups with $1.19 billion raised so far.
While big deals involving global money are more likely to make headlines, the investors operating on the continent are keen on small and medium sized startups with this trend likely to continue as the investment space in African continues to mature.