Venture Capital - Rwanda

Rwanda

Highlights

Rwanda is a country where the Total Capital Raised in the Venture Capital market market is projected to reach US$130.60m in 2024.
Later Stage dominates the market with a projected market volume of US$116.20m in 2024.
In global comparison, most Capital Raised will be generated the United States (US$136.6bn in 2024).
Rwanda's Venture Capital market is experiencing a surge in investor interest, driven by tech startups and sustainable initiatives in Kigali.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Rwanda has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Rwanda, there is a growing interest among entrepreneurs and startups to secure funding through Venture Capital. This is primarily due to the fact that Venture Capital provides not only financial support but also valuable expertise and networks. Entrepreneurs are increasingly seeking out Venture Capital firms that can offer strategic guidance and industry connections, in addition to capital investment. This shift in customer preferences is driving the growth of the Venture Capital market in Rwanda.

Trends in the market: One of the key trends in the Venture Capital market in Rwanda is the focus on technology-driven startups. Rwanda has been investing heavily in building a strong digital infrastructure, and this has created a favorable environment for tech startups to thrive. Venture Capital firms are keen to invest in these tech startups, as they see significant growth potential in this sector. This trend is driving increased investment in technology-driven startups and shaping the overall landscape of the Venture Capital market in Rwanda.

Local special circumstances: Rwanda has a supportive government that is actively promoting entrepreneurship and innovation. The government has implemented policies and initiatives to attract foreign investment and support the growth of startups. This includes the establishment of innovation hubs and incubators, as well as the introduction of tax incentives for investors. These local special circumstances have created a conducive environment for Venture Capital firms to operate and invest in Rwanda.

Underlying macroeconomic factors: The macroeconomic factors in Rwanda are also contributing to the development of the Venture Capital market. The country has been experiencing steady economic growth, with a focus on diversifying the economy and reducing dependence on traditional sectors. This has led to the emergence of new industries and sectors, which in turn has created opportunities for Venture Capital investment. Additionally, Rwanda has a young and growing population, which provides a pool of talent and potential entrepreneurs for Venture Capital firms to invest in. In conclusion, the Venture Capital market in Rwanda is experiencing significant growth due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Entrepreneurs are increasingly seeking Venture Capital funding for the strategic support it offers, and Venture Capital firms are focusing on technology-driven startups. The supportive government policies and the favorable macroeconomic environment are further driving the growth of the Venture Capital market in Rwanda.

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.