African startups are increasingly raising funding from international investors for a variety of reasons. One of the main reasons is the growth and potential of the African market. 

According to Africa The Big Deal Database, a database tracking funding in Africa, the continent's startup ecosystem saw a record-breaking $2.1 billion in funding in 2020, with more than half of the deals involving international investors. This trend has continued in 2021 and 2022 where African startups raised $4bn and $4.5bn respectively. This is because, a growing number of international investors recognizing the potential of Africa's young and rapidly growing population, as well as its untapped markets and resources.

One of the key drivers of this trend is the increasing availability of data and technology on the continent. As more African countries gain access to high-speed internet and mobile technology, it has become easier for international investors to access information about African startups and the potential of the market. This has led to a growing interest in the continent from investors around the world, who are looking to tap into the potential of Africa's burgeoning startup ecosystem.

Another factor contributing to the growing interest in African startups is the increasing number of success stories coming out of the continent. In recent years, a number of African startups have achieved significant growth and success, attracting the attention of international investors. For example, Nigerian e-commerce platform Jumia, which was founded in 2012, went public in 2019 on the New York Stock Exchange(NYSE) and had a valuation of over $1bn at its peak.  Other notable exits include Stripe's $200m purchase of Nigerian Fintech, Paystack. 

Similarly, German pharmaceutical giant BioNTech acquired Tunisian-born AI startup, Instadeep in a deal worth over $600m.

These success stories have helped to demonstrate the potential of the African market and have encouraged more international investors to look to the continent for opportunities.

One of the key international investors in African startups is the World Bank Group's International Finance Corporation (IFC). The IFC has invested in a number of African startups, including Nigerian e-commerce platform MallforAfrica and Kenyan agricultural technology company Twiga Foods. Other international investors in African startups include venture capital firms such as 500 Startups, which has invested in Kenyan edtech startup Andela, and Silicon Valley-based accelerator Y Combinator, which has backed Nigerian fintech company Paystack, Ugandan credit startup Numida and Tanzania's NALA Money. Y Combinator has invested in over 50 African startups to date. 

Despite the increasing interest in African startups, there are still a number of challenges facing the continent's startup ecosystem. One of the main challenges is the lack of access to funding. According to CB Insights, a global venture capital database, Africa received just 1% of global venture capital funding in 2020. The figure has barely changed since then. This is in contrast to other emerging markets such as China and India, which received 17% and 12% of global venture capital funding, respectively.

Another challenge facing African startups is the lack of regulatory and legal frameworks in place to support the growth of the ecosystem. Many African countries still lack the necessary laws and regulations to support the development of startups, which can make it difficult for entrepreneurs to access funding and other resources.

Despite these challenges, the future for African startups looks promising. With a growing number of international investors recognizing the potential of the continent and a growing number of success stories coming out of Africa, it is likely that the trend of African startups raising funding from international investors will continue in the coming years.

To conclude, the growing potential of African market, the increasing availability of data and technology on the continent, the increasing number of success stories and the support of international investors like World Bank Group's International Finance Corporation and venture capital firms such as 500 Startups and Y Combinator have been the main reasons why African startups are increasingly raising funding from international investors. 

However, the lack of access to funding and lack of regulatory and legal frameworks still remain as a challenge for the ecosystem. But the future looks promising for African startups.