African startup funding has declined by over 50% in the past three quarters, raising concerns about sustainability. The decline in external funding is especially worrisome given Africa's reliance on it compared to other emerging tech ecosystems. 

🚀 Where's the Next Source of Capital?

A report from the African Private Equity and Venture Capital Association (AVCA) reveals that 77% of venture capitalists funding African startups last year were from outside the continent. African founders are increasingly eyeing Middle Eastern investors and LPs.

💡 Opportunities and Challenges

Startups and VCs are exploring new options in the Middle East, aiming to tap into sovereign wealth funds and venture capital. However, meeting specific criteria and demonstrating plans for regional expansion are crucial to gain support.

🌐 Dubai's Appeal

Dubai is becoming a hub for African startups due to its efficient startup incorporation, tax system, and facilitation of residence permits and visas. Early-stage startups are moving to Dubai to escape economic challenges.

🤝 Building Bridges

The Middle East and Africa are forming connections in the tech sector, but it remains to be seen how this will impact investment and collaboration.

🦄 Moove's Success

Moove, a Lagos-based mobility fintech, expanded its reach to Dubai and secured funding from Abu Dhabi-based Mubadala Investment Company.

🌟 Conclusion

African startups are diversifying their sources of capital by looking to the Middle East. However, challenges and opportunities lie ahead as they navigate this evolving landscape.

#AfricanTech #Investment #MiddleEast #StartupFunding

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