Women-led African tech startups are significantly less likely to raise funding than their male-run counterparts, according to a groundbreaking study on gender diversity released by Disrupt Africa.
Since launching its research arm in 2016, Disrupt Africa has built up a significant portfolio of publications, most notably the African Tech Startups Funding Report, Finnovating for Africa, and deep-dives into various leading startup ecosystems, available free for all via open-sourcing initiatives with various partners across the continent’s tech ecosystem.
Its latest publication, its 21st in total, is the company’s most ambitious ecosystem research project to date – focusing on gender equality in the African tech startup landscape, “Diversity Dividend: Exploring Gender Equality in the African Tech Ecosystem”.
Powered by Madica, an Africa-focused pre-seed investment programme empowering underrepresented and underfunded mission-driven founders on the continent, and also supported by FirstCheck Africa, TLcom Capital, LoftyInc Capital Management, Google for Startups, RevUp Women by AfriLabs, iceaddis, the International Trade Centre, and Janngo Capital, the report lays bare the lack of gender diversity both within startup teams and funding rounds on the continent.
Between January 2022 and April 2023, the period covered by this publication, 711 individual African tech startups raised a combined total of just over US$4 billion in funding. Of those 711 companies, just 149 (21%) had a female co-founder, and only 83 (11.7%) had a female CEO.
When it comes to funds raised, US$369,102,000 (9.1%) of funds went to startups with at least one female co-founder, and only US$119,053,000 (2.9%) was invested in companies led by a female CEO.
The relatively bleak picture painted by these figures is not one that is showing any signs of getting rosier, regrettably, with 2022 funding figures similar to 2021 from a gender diversity perspective.
When it comes to geography and vertical, the direction of funding into female-founded ventures broadly follows wider trends, with Nigeria by far the most attractive country and fintech the leading sector.
Disrupt Africa reported last week that fewer than 10 per cent of African tech startups are led by a female CEO, while less than 15 per cent even have a female co-founder.
To download the report for free, please go here, or email Gabriella on gabriella@disrupt-africa.com, or Tom on tom@disrupt-africa.com.
