African tech entrepreneurs are facing challenges in fundraising due to the ongoing global economic downturn. Despite the launch of new venture capital funds, investors are approaching funding with a more cautious approach.

The retreat of some international funds and significant losses for international limited partners (LPs) have affected investor sentiment and contributed to a slowdown in funding activity. Many venture capital firms have delayed the final closing of new funds and reduced their investment pace in the latter half of 2022 and the beginning of 2023.

In the first half of 2023, African tech startups raised approximately $1.3 billion across 148 deals, as reported by BD Funding Tracker. This represents a 47.69% decline in funding compared to the funds raised during the same period last year, which amounted to $2.5 billion.

The decline in fundraising highlights the impact of the global economic conditions on the investment landscape for African tech startups. However, despite the challenges, the article does not mention a complete halt in funding activities, suggesting that entrepreneurs and investors are still actively pursuing opportunities in the African tech ecosystem.

Read more on BenjaminDada