Baobab Developments: North Africa Start-up Product and Market Updates Q3 2020

North Africa Start-up founders have had a busy quarter in terms of the number deals closed, but how has this translated into funding raised? Excluding grants, prizes and non-equity funding rounds, our analysts tracked a total of 24 Ventured-backed investment rounds. Although an unusually high number of these rounds were undisclosed, funding still totalled $8.71 million USD in venture investment for North African founders.

As we have seen in previous reports; the transport and logistics, and e-commerce and online retail sectors both had strong quarters across the North Africa region. The likes of Egyptian delivery company Roadrunner, Ordera and Glamera (amongst others) all securing early stage funding rounds.

In this 13 page report, we look into the key market developments and funding rounds, as well as taking a closer look at some of the Investment Funds announced by investors across the region.

Headlines from the North Africa Start-up Report:

  • Technology companies in North Africa secured 13% of total technology investment across Q1-Q3 2020 which is in line with the 14% secured by North African tech companies in 2019. However, Q3 investment dropped from 21.4% of total funding in H1 2020 to 2.2% in Q3 2020.
  • Start-ups based in Tunisia and Morocco secured only 12.1% of funding closed by companies based in North African in 2020. This is a reduction in the proportion of funding secured by North African companies headquartered outside of Egypt; from 27.5% of total funding in 2018 and 20.5% in 2019.
  • Early stage funding, such as pre-seed, seed and Angel investment, accounted for 67% of funding in North Africa throughout both 2019 and 2020 YTD. However, the proportion of early stage funding has risen to 76.9% in Q3 2020.

Quarterly investment total and deals across all North African technology companies from 2018 to Q3 2020

Graph showing quarterly investment into North Africa tech companies 2018 - 2020


This report was first published in November 2020.

Download full 13 page North Africa Product and Market Developments report in PDF 

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