Joy Agwunobi
The tech and investment industries in Africa remain overwhelmingly male-dominated despite a global push for gender diversity in business organisations, particularly tech-based startups, according to a recent report by Africa: The Big Deal, which tracks funding for African tech startups.
The report found that out of the 27 startups that have raised over $100 million in funding since 2019, only three were led by women, highlighting the significant challenges that female founders continue to face in securing investment.
The Big Deal report reveals a significant disparity in funding for female-led startups in comparison to their male counterparts. This is as female-owned startups only received 2.3 percent of total funding in 2023, while male-led startups captured a much larger share of 85 percent.
The striking difference in funding reflects the structural barriers that female entrepreneurs in Africa face, which have a detrimental impact on their ability to compete in the startup ecosystem and reach their full potential.
The Big Deal report however identified a handful of exceptions where female CEOs have managed to break into this elite group. According to the report, since 2019, all ventures that have raised over $100 million in funding on the continent have been led by male CEOs. However, three female-led startups have managed to buck this trend and secure significant funding, including Gro Intelligence, co-founded and formerly led by Sara Menker.
According to the report, Gro Intelligence, co-founded and formerly led by Sara Menker, managed to make history by raising $85 million in a Series B funding round in January 2021, the highest funding round for a female-led startup on the African continent. However, despite this notable achievement, Gro Intelligence faced a setback in 2023 when Menker was replaced by James Cariello as CEO. This change in leadership coincided with reports that the company is now struggling financially and may soon close its doors.
The Africa: The Big Deal report also identified Sabi, a Nigerian logistics startup co-founded by Anu Adasolum, as one of the exceptional female-led ventures that have raised significant funding. Sabi managed to secure $38 million in a Series B round in May 2023, with its valuation rumoured to be well over $300 million.
Cape Bio Pharms, led by CEO Belinda Shaw, is another notable example of a female-led venture highlighted in the report. As a spin-off from the University of Cape Town, Cape Bio Pharms is focused on developing innovative solutions in the field of biopharming. In 2020, the venture was successful in securing a sizable grant of over $50 million, which reflects its potential for growth and innovation. However, the report indicates that there have been no additional funding rounds for the company since then, which might indicate that its progress has slowed down or encountered challenges.
The report also revealed that 27 African startups have successfully raised over $100 million in equity, debt, or grant funding since 2019, indicating the growing trend of funding for African startups across various sectors.
Out of these 27 ventures, MTN-Halan has emerged as the top fundraiser, with nearly $1 billion raised over the past five and a half years, solidifying its position as a leader in the African startup ecosystem.
“If we lower the threshold to include startups that have raised $50 million, the list expands to 56 ventures. To break into the top 100, a startup must have raised at least $32 million during this period,” the report stated.
While the fundraising achievements of these African startups are considered commendable, the Africa: The Big Deal report highlighted the stark gender imbalance among the top-funded companies.
The report emphasised that all 10 of the highest-funded startups since 2019 are led by male CEOs, reflecting the persistent lack of female representation in leadership positions in this sector.
Furthermore, the report found that there are no female-led ventures among the entire group of 27 startups that have raised over $100 million, indicating the severe underrepresentation of women in the highest levels of the African startup ecosystem.
