Kenya leads venture capital deals in East Africa

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Data shows that late-stage deals (which more than doubled in the last year) are popping up with increasing frequency in the startup ecosystem in Africa. [iStockphoto]

Kenya leads the value of corporate deals in East Africa in the first half of this year, according to new data on the performance of venture capitalists.

A new report from the London-based African Private Equity and Venture Capital Association (AVCA) shows that overall Egypt leads in deal value on the continent at 42.7 billion shillings, with 63 deals completed during the reporting period, followed by Kenya at 40 shillings. 1 billion with 54 transactions.

Nigeria was third with 101 deals valued at 34.6 billion shillings.

The 2022 H1 African Venture Capital Activity report shows that the first half of 2022 saw 445 venture capital deals awarded to 300 unique companies in Africa’s venture capital ecosystem, an industry record.

This, the report notes, corresponds to an annual growth of 72% compared to the first half of last year.

“Despite the historical trend of increasing year-end deal activity, the first six months of 2022 demonstrated strong year-on-year growth in a muted global macroeconomic environment where contractions rather than expansions were standard,” the report said.

Median value

Meanwhile, seed-stage deals, which account for the largest proportion of venture capital deal volume in Africa, saw a 97% year-on-year increase over the previous year.

“The median value of seed transactions also showed significant growth during this period, from 72.8 million shillings in the first half of 2021 to 218.5 million in the first half of 2022.”

On the other side of the spectrum, the data shows that late-stage deals (which more than doubled in the last year) are popping up with increasing frequency in the startup ecosystem in Africa.

“A selection of late-stage deals that have taken place during this period include Flutterwave’s Sh30.4 billion Series D round and the Sh11.1 billion Series C round at southern supplier -African commerce chat Clickatell,” the report noted.

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