Women-Led African Healthtech Startups Secure $52M Funding Surge

In a historic development, women-founded African health technology startups received record funding, totaling $52 million last year. According to Salient Advisory's newest Market Intelligence report, "2023 Roundup: Investments in African Healthtech," this is a more than 2,000% growth over 2022's 1.4%.

The study shows a huge rise from the $2 million in financing granted to women-led businesses in 2022. In terms of transactions, the number increased from 26 in 2022 to 33 during the last year. Furthermore, financing for mixed-gender founding teams rose from 10% to 21%.

Yomi Kazeem, Engagement Manager at Salient Advisory, credits this spike to huge fundraising rounds obtained by women-founded startups, with Kasha's $21 million round being the highest. Other significant awardees include Dawi Clinics, Maisha Meds, and Chefaa, which together represent for 75% of the total money raised by female founders in 2023.

Yomi underlines the need of continuing this trend, arguing for deliberate measures to funding female entrepreneurs to solve long-standing gender finance inequalities. He sees a more inclusive African healthtech ecosystem, with increasing support for women-founded businesses, which would ultimately have revolutionary effects on health systems throughout the continent.

Despite a 2% loss in total investments, the African healthtech industry outperformed the larger tech ecosystem, which witnessed a 39% decrease in financing. The industry saw a 17% rise in transactions, with Nigeria, Kenya, and Egypt emerging as hot spots for investment.

Equity investments dominated the financing scene, accounting for 91% of all investments, while grants played an important role in testing business models and pushing innovators' development trajectories.

The research predicts further investment activity, notably in online pharmacy solutions, as well as additional mergers and acquisitions, as investor interest in African health technology grows, with over $600 million raised in fresh funds last year alone.