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The Rise of The African Tech Scene - 2019

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The VC African market is growing rapidly. The amount invested over the continent has been multiplied by 2 between 2015 and 2017 and by 2 again between 2017 and 2018, making Africa the fastest growing VC market.
Recognizing this trend with an ambition to be a key player of the VC African ecosystem, Orange Digital Ventures launched in 2017 its 50m€ African fund.

Today, Africa is the only continent (comparatively to Europe, the United States and Asia) where the number of deals closed annually is still growing.

ODVA is studying closely the driving forces of such trends, and in its recent report zooms into a few: the Founders’ profiles behind Africa’s tech growth and the tech ecosystem evolution

Find out more on: http://bit.ly/2FnNgPn

You can have access to our DataBase here: http://bit.ly/2XA1eVu

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The Rise of The African Tech Scene - 2019

  1. 1. 1 THE RISE OF THE AFRICAN TECH SCENE 2019 Bilal Djelassi @bilal_zindje Sami Machta @SamiMachta Ouis Abdessadok @Ouis_Abdk
  2. 2. 2 @Orange_DVdigitalventures.orange.com Over the last 3 years, Africa has experienced the fastest growth in VC backed deals and amounts x4.2in funding ($) between 2015-2018 Funding growth on a base 100 Sources: Partech, Pitchbook Base 100 from 2015 values: all values from 2015 for the different continents have been converted into 100. 2016, 2017 and 2018 values have been calculated comparatively to the 2015 values. Africa Europe US Asia Africa Europe US Asia X3 in #deals between 2015-2018 Deals growth on a base 100 0 50 100 150 200 250 300 350 400 450 2015 2016 2017 2018 0 50 100 150 200 250 300 350 2015 2016 2017 2018
  3. 3. 3 @Orange_DVdigitalventures.orange.com Europe U.SAsia Africa $1.2Bn +108% 1.2Bn ~$1 $23Bn +5% 741m ~$31 $131Bn +58% 330m ~$397 $93Bn +45% 4.4Bn ~$21 Invested amount in 2018 2017-18 Growth #People Invested amount per capita Sources: Partech, Pitchbook, Dealroom And there is still a huge potential to be unlocked
  4. 4. 4 @Orange_DVdigitalventures.orange.com In 2018, the amount of funding skyrocketed to more than 1 billion dollars, representing a steady growth multiple of x4.2 over the last 36 months… You can download the full report on Partech’ website. 277 367 560 1163 2015 2016 2017 2018 Total funding amount in $M +28% growth in the number of rounds +18% growth in the number of startups funded +108%2017 2018 70 rounds at Series A & B stage, +46% representing about $482M, +58% 14 rounds at Late stage, +100% representing about $602M, +120%
  5. 5. 5 @Orange_DVdigitalventures.orange.com …and we can only be optimistic for 2019 1st IPO above $1Bn for a Tech startup operating in Africa inspiring a cohort of new founders in the continent, 61 former Jumia’s employees are currently CEOs, of which 43% are based in Africa A new unicorn is born Zipline has become the second startup with operations in Africa to join this prestigious club with a valuation of $1.2Bn+ and $190M in new financing
  6. 6. 6 The Founders behind Africa’s tech growth
  7. 7. 7 @Orange_DVdigitalventures.orange.com African entrepreneurs have a high-level of education, mostly received from American and European Universities 97% of founders of African startups that are VC-backed have at least a Bachelor Degree and 58% a Master degree 66% of those founders have studied either in the USA, France or United Kingdom Founders of African startups that received a minimum of $100k in funding in 2018 based on our internal tracker 1 out of 5 founders of the 2018 cohort graduated from a tier-1 University Top universities in the world Top universities according to the Financial Times
  8. 8. 8 @Orange_DVdigitalventures.orange.com An important international experience and a diversified background characterized the 2018 cohort 5% 6% 6% 19% 26% 34% E-commerce Marketing Finance Consulting Engineering Sales 51% 21% 16% 8% 4% Founder’s backgrounds are well diversified 1 out of 2 founders has 5+ years of international experience Founders of African startups that received a minimum of $100k in funding in 2018 based on our internal tracker
  9. 9. 9 @Orange_DVdigitalventures.orange.com Africa is the continent counting the highest number of women entrepreneurs, paving the way for other geographies Sub-Saharan Africa has the world’s highest rate of women entrepreneurs in 2017 at 27% ... … with two African countries among the world top 3: Botswana (34,6%) Uganda (34,8%) 28% of the African startups which have raised money in 2018 have at least one female executive* 16% of VC-backed founders are female, versus 84% male* Sources: MasterCard Index of Women Entrepreneurs 2017 Founders of African startups that received a minimum of $100k in funding in 2018 based on our internal tracker
  10. 10. 10 The Ecosystem continues to expand rapidly
  11. 11. 11 @Orange_DVdigitalventures.orange.com 140+ players have been added to our mapping of the ecosystem Financing 200+ Connecting 55+ Covering 30+ Accelerating / Incubating 60+ Discover our Open Data Base here: http://bit.ly/2XA1eVu *This slide is not exhaustive, you can find more about our mapping in our open data base
  12. 12. 12 @Orange_DVdigitalventures.orange.com 130+ venture investors are backing the African tech scene 29+ 41+ 17+ 50+ 60+ 20+ Seed Early Stage Growth +75%2017 2018 +46%2017 2018 +18%2017 2018 Sources: ODVA’s Data Base, Techcrunch, Crunchbase
  13. 13. 13 @Orange_DVdigitalventures.orange.com The number of active tech hubs is still growing… 45% of Tech hubs are still concentrated in 5 countries South Africa, Kenya, Nigeria, Egypt and Morocco But this number is decreasing overtime in favor of a more decentralized ecosystem In only 2 years, the number of tech hubs almost doubled in Nigera and Ghana while it has increased significantly in Ivory Coast 170 314 442 Source: Afrilabs for 2012, BongoHive for 2014, GSMA for 2016/2018 +40% Tech hubs in Africa between 2016-2018 2018 2016 2014
  14. 14. 14 @Orange_DVdigitalventures.orange.com …while more and more tech events are taking place accross the continent to connect the ecosystem Full list available on our Open Data Base: http://bit.ly/2XA1eVu *This list is non-exhaustive MONTH FEBRUARY FEBRUARY MAY NOVEMBER DECEMBER DECEMBER CITY KIGALI & LONDON NAIROBI PARIS CAPE TOWN DAKAR LAGOS SCOPE TECH IMPACT TECH TELCO TECH TECH A sample of the +25 major tech events identified on our Open Data Base
  15. 15. 15 Appendix
  16. 16. 16 @Orange_DVdigitalventures.orange.com connectivity fintech e-commerce e-energy agritech healthtech e-gouv logistic cloud €50M Orange Digital Ventures Africa Based in Dakar, Senegal dedicated to African startups +40m customers €34Bn transaction volume in 2018 Orange in Africa 120M customers 18k employees 22 countries Investment scope Portfolio companies edtech Mobile content
  17. 17. 17 @Orange_DVdigitalventures.orange.com Methodology Ecosystem database We’re pleased to share our database of accelerators, incubators, investors, events and tech hubs. Any feedback to update it will be highly appreciated. You can access to the data base via this link: http://bit.ly/2XA1eVu Investors  We have only retained venture program with reliable information such as a website, recent investments and team members  We define a venture program as a fund or any organization with a strong focus on investing into African startups  Private equity funds investing occasionnaly in tech companies were excluded to retain only the most active and focused on venture deals  We do not have the pretention to capture the entire ecosystem but we are willing to give the best overview, so feel free to contact us and help us to update the database Founders  We have analyzed the founders’ profiles of each startup which has raised more than $100k in 2018 (HQ in Africa or having an African country as their primary market) according to public and disclosed sources  We have selected several criterias for our analysis like age, sex, background, country or place of study  Our analysis is based on information collected on startups’ websites, Linkedin, Public DataBases, Press releases and directly from entrepreneurs Sources Here are the sources we used to compile data about fundings  Africa : Partech https://partechpartners.com/news/2018-was-monumental-year-african-tech-start-ups-us1163b-raised-equity/  Europe: Pitchbook https://files.pitchbook.com/website/files/pdf/2018_Annual_European_Venture_Report.pdf  Asia : Pitchbook https://assets.kpmg/content/dam/kpmg/xx/pdf/2019/01/kpmg-venture-pulse-q4-2018.pdf  US : Pitchbook https://pitchbook.com/news/articles/18-charts-to-illustrate-us-vc-in-2018
  18. 18. 18 Thank you!

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