Venture Capital - Togo

Togo

Highlights

The country in Togo is expected to witness a Total Capital Raised in the Venture Capital market market reaching US$9.24m by 2024.
The market Early Stage is set to dominate, with a projected market volume of US$7.50m in 2024 withTogo.
In global comparison, the United States will lead in Capital Raised, generating US$136.6bn in 2024.
Togo's Venture Capital market is seeing a rise in investments in tech startups, driven by government initiatives to promote innovation and entrepreneurship.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Togo is experiencing significant growth and development in recent years.

Customer preferences: Investors in Togo are increasingly turning to venture capital as a means of financing and supporting innovative startups and small businesses. This is driven by the desire to diversify their investment portfolios and tap into the potential for high returns offered by early-stage companies. Additionally, there is a growing recognition of the importance of entrepreneurship in driving economic growth and job creation, which further fuels the demand for venture capital funding.

Trends in the market: One of the key trends in the venture capital market in Togo is the emergence of sector-specific funds. Investors are recognizing the potential of specific industries such as technology, renewable energy, and agribusiness, and are establishing funds dedicated to these sectors. This specialization allows for a deeper understanding of the unique challenges and opportunities in these industries, and enables investors to provide targeted support and guidance to the companies they finance. Another trend in the market is the increasing involvement of international investors. Togo has been attracting attention from foreign venture capital firms, particularly those looking to invest in emerging markets with high growth potential. These international investors bring not only capital but also expertise and global networks, which can greatly benefit the local startups and contribute to their success.

Local special circumstances: Togo's geographical location in West Africa provides it with unique advantages in terms of access to regional markets. The country serves as a gateway to the Economic Community of West African States (ECOWAS), a market of over 350 million people. This regional integration presents opportunities for Togolese startups to scale their operations and expand beyond the domestic market, attracting the attention of venture capital investors who are looking for companies with regional growth potential. Furthermore, the government of Togo has implemented policies and initiatives to support entrepreneurship and innovation. This includes the establishment of incubators and accelerators, as well as the introduction of tax incentives and regulatory reforms to create a more favorable business environment. These efforts have helped to foster a vibrant startup ecosystem and attract both local and international venture capital investors.

Underlying macroeconomic factors: The positive growth trajectory of Togo's economy, coupled with stable political conditions, provides a conducive environment for venture capital investment. The country has experienced consistent economic growth in recent years, supported by sectors such as agriculture, manufacturing, and services. This economic stability and potential for further growth make Togo an attractive destination for venture capital investors seeking opportunities in emerging markets. In conclusion, the Venture Capital market in Togo is experiencing significant growth and development, driven by customer preferences for diversification and high returns, as well as the recognition of the importance of entrepreneurship in driving economic growth. The emergence of sector-specific funds and the increasing involvement of international investors are key trends in the market. Togo's unique geographical location and government support for entrepreneurship further contribute to the growth of the venture capital market. The positive macroeconomic factors, including stable political conditions and consistent economic growth, make Togo an attractive destination for venture capital investment.

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.