Funding dries up as tech start-up businesses falter
Yamaha managers hand over a motorcycle to Sendy rider Peter Sande (centre), acquired through a financing partnership between Sendy and a Nairobi-based fintech firm. PHOTO | POOL
East Africa’s private equity (PE) investments in tech start-up businesses declined by 54 percent last year as the adverse impact of the Covid-19 pandemic pushed venture capitalists to close funds at smaller values than initially planned.
Latest Africa Tech Venture Capital Report (2020) shows that the region attracted $334.3 million worth of private equity capital last year compared to a high of $729 million in 2019, with Kenya leading its peers in the region with investment funds estimated at $305 million.
