Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - Eastern Africa

Eastern Africa

The Total Capital Raised in Eastern Africa's Venture Capital market market is expected to reach US$925.6m in 2024.
The Later Stage market is set to lead the market with a projected market volume of US$772.6m in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised, reaching US$264,500.0m in 2024.
In Eastern Africa, Kenya is emerging as a hotspot for Venture Capital investment due to its vibrant startup ecosystem and supportive regulatory environment.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

Market

Region

Region comparison

Currency

Analyst Opinion

Eastern Africa is experiencing a significant growth in its Venture Capital market. This can be attributed to several factors, including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences in Eastern Africa are shifting towards investing in innovative and high-growth potential startups. Investors are increasingly looking for opportunities in sectors such as technology, fintech, and renewable energy. This is driven by the potential for high returns on investment and the desire to support local entrepreneurship and job creation.

Trends in the market indicate a growing number of startups and entrepreneurial activities in Eastern Africa. This can be attributed to the increasing availability of funding and support for startups, as well as the growing ecosystem of incubators, accelerators, and venture capital firms. The rise of mobile technology and internet connectivity has also played a significant role in enabling the growth of startups in the region.

Local special circumstances in Eastern Africa contribute to the development of the Venture Capital market. The region has a young and dynamic population, with a high percentage of tech-savvy individuals. This creates a favorable environment for innovation and entrepreneurship.

Additionally, Eastern Africa has a strong culture of entrepreneurship, with many individuals starting their own businesses to address local challenges and create social impact. Underlying macroeconomic factors in Eastern Africa also support the growth of the Venture Capital market. The region has been experiencing steady economic growth, with increasing foreign direct investment and a growing middle class.

This provides a larger pool of potential investors and a growing market for startups to tap into. Furthermore, governments in the region are implementing policies and initiatives to promote entrepreneurship and attract investment, creating a conducive environment for venture capital activity. In conclusion, the Venture Capital market in Eastern Africa is developing rapidly due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

The region's focus on technology and innovation, coupled with a supportive ecosystem and favorable economic conditions, has created a conducive environment for startups and venture capital investment. As the market continues to grow, it is expected to contribute significantly to job creation, economic development, and technological advancement in Eastern Africa.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.