In 2022, over 50% of the 633 African tech startups that received funding had participated in either an accelerator or incubator program at some point during their existence, a new report shows.
A total of 330 (52.1%) of the funded African tech startups from 2022 took part in some form of accelerator or incubation programme either prior to raising, or as part of their raise.
This marks a sizeable increase from 2021, when only 213 (37.8%) of the funded ventures had done… pic.twitter.com/uUUSHf8Q2P
— BitKE (@BitcoinKE) April 30, 2023
The African Tech Startups 2022 Funding Report revealed that the 633 startups altogether raised over $3.3 billion, representing significant growth from 2021 when 564 startups raised $2.1 billion.
Out of the funded startups in 2022, the report says that 330 (52.1%) had participated in some type of accelerator or incubation program, either before receiving funding or during the fundraising process. This represents a significant increase from the previous year, as only 213 (37.8%) of the funded startups had participated in such programs in 2021.
International accelerators like Y Combinator and Techstars are found to have a growing interest in the region’s startups and account for a large part of the increase.
As a result of the increasing role of accelerators in the startup ecosystem, the report identified pre-seed and seed as the primary stages when most startups raised.
In addition to funding, accelerators and incubators can provide significant value to African startups in several ways:
- Mentorship – Accelerator and incubator programs offer startups access to experienced mentors who can provide guidance and advice on various aspects of their business, including strategy, marketing, and fundraising
- Network – Startups can benefit from the vast networks that accelerators and incubators offer, which can connect them with potential investors, customers, and partners
- Funding – Many accelerator and incubator programs provide startups with funding, either in the form of seed funding or access to investors
- Education – Programs often provide training and workshops to help startups develop skills in areas such as product development, customer acquisition, and financial management
- Validation – Being accepted into an accelerator or incubator program can provide startups with validation and credibility making it easier for them to attract future investment and customers
Overall, participating in an accelerator or incubator program can help African startups overcome some of the challenges they face in their early stages and increase their chances of success.
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