Energy startup funding surpasses fintech for two consecutive quarters in 2023
- 2023 will be known as the peak of Africa’s tech funding winter. How have energy startups fared?
- What countries and sub-sectors have investors been interested in? What will 2024 hold?
2022 and 2023 have been slow for global venture capital (VC) funding, as rising global interest rates have led to a market correction. From company shutdowns to fewer funding announcements, the impact has been evident.
However, the energy sector, specifically clean energy startups, has been the exception. Total global VC funding to clean energy startups increased from $1.9 billion in 2019 to $12.3 billion in 2022, over 6x higher.
Zooming in on Africa, this exceptional trend is also evident. According to data from Africa The Big Deal database, the energy sector recorded the second most significant increase in funding between 2021 and 2022, with $867 million raised in 2022, double 2021’s $408 million. In 2023, excluding December data yet to be released, the sector has raised $803 million and still has a chance of attaining 2022’s figures, given announcements such as BasiGo’s $5 million raise.
In contrast, fintech, which has
Invest with Confidence, Operate with Precision.
Access economic and industry data & insight for global organisations.
Trusted by leading global organisations
