The African tech ecosystem has had a rough year in 2023. Stears’ analysis of funding data between Q1 and Q3 2023 supported this view, as funding slowed down significantly compared to previous periods.
Many startups have closed shop across the continent within this slow and low funding environment. At the latest count, 12 startups accounting for approximately $196 million in funding raised have stopped operating, according to data captured in the BD African Startup Graveyard, a database of African tech startups that have shut down operations.
This figure is 2x the number of shutdowns recorded in 2022—it also makes up 33% of all cumulative African startup shutdowns recorded since 2014.
A Stears report published in January hinted at the current situation with a forecast predicting a shift in the investment landscape favouring investors, who would yield more power in negotiations, leading to increased attention, due diligence, and more caution in