Venture Capital - Ghana

Ghana

Highlights

Ghana is projected to reach a Total Capital Raised of US$327.30m in the Venture Capital market market by 2024.
In the country, Later Stage dominates the market with a projected market volume of US$295.70m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised, amounting to US$136.6bn in 2024.
Ghana's Venture Capital market is experiencing a surge in funding for tech startups, driven by a growing ecosystem and increased investor confidence.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Ghana has been experiencing significant growth and development in recent years.

Customer preferences: Investors in Ghana are increasingly turning to venture capital as a means of investment, attracted by the potential for high returns and the opportunity to support emerging startups. This growing interest in venture capital is driven by a number of factors, including a desire for diversification of investment portfolios and a recognition of the potential for innovation and growth in the startup sector.

Trends in the market: One of the key trends in the venture capital market in Ghana is the increasing number of local and international investors who are actively seeking opportunities to invest in Ghanaian startups. This trend is fueled by the country's growing reputation as a hub for innovation and entrepreneurship, as well as the government's efforts to create a favorable business environment for startups. Additionally, there has been a rise in the number of venture capital firms and angel investors operating in the country, providing startups with much-needed funding and support.

Local special circumstances: Ghana's startup ecosystem has been steadily maturing, with a growing number of successful startups emerging in recent years. This has created a positive feedback loop, attracting more investors to the market and further stimulating the growth of the startup sector. The government has also implemented policies and initiatives aimed at supporting the growth of startups, such as tax incentives and the establishment of incubators and accelerators. These factors have contributed to the overall development of the venture capital market in Ghana.

Underlying macroeconomic factors: The growth and development of the venture capital market in Ghana can also be attributed to underlying macroeconomic factors. The country has experienced a stable and relatively strong economic growth in recent years, which has created a conducive environment for investment. Additionally, the government's commitment to promoting entrepreneurship and innovation has helped to attract both local and foreign investors to the market. Furthermore, the increasing access to technology and the internet has facilitated the growth of startups in various sectors, such as fintech, e-commerce, and agribusiness. In conclusion, the venture capital market in Ghana is experiencing significant growth and development, driven by customer preferences for high returns and support for startups. The increasing number of investors, both local and international, and the government's support for entrepreneurship and innovation have contributed to the overall growth of the market. With a favorable business environment and a growing number of successful startups, Ghana is poised to become a leading destination for venture capital investment in the region.

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.