African startups are weathering the storm with acquisitions and securing new funding
The TechCabal Insights report has shown that there has been an increase in the number of tech acquisitions in Africa, with a total of 43 deals by the end of Q3 2022. This indicates a consolidation trend and shows that the tech market is maturing.
VC investment has hit a plateau in the last quarter, with startup companies resorting to cost-cutting measures and acquisitions in order to stay afloat. This is particularly apparent in markets where there is already significant competition among businesses. The percentage of startups acquiring another business in the same market has increased from 31% in Q2 to 52% in Q3 2022.
The State of Tech in Africa Report compiled by TechCabal Insights, also found that the average seed ticket size remained stable at $2.5M in Q2 and $2.7M in Q3.
A new narr...