African start-ups raised a record $5.3 billion last year, though that may be the high-water mark as a deepening slump in the technology industry reduces the funding pool.
While investment in 2022 exceeded the previous year by just $100,000, the number of deals jumped 20 per cent to 964, according to data from Briter Bridges, a market intelligence company.
“There are some red flags in that the mega-deals are largely driven by overseas, non-African-committed investors,” said Dario Giuliani, director at Briter Bridges.
“There is a risk that the pool for growth funding may be limited in 2023.”
Global funds such as Sequoia Capital, Tiger Global and the failed crypto company FTX led the largest investments in African start-ups over the past few years.
But with recession looming in many Western nations and job cuts accelerating across technology companies — Amazon is laying off more than 18,000 employees — private equity and venture capital firms may choose to conserve cash.
“Valuations of tech companies” are depressed, said William Sonneborn, International Finance's global director of disruptive technology and funds.
“Private businesses aren’t immune from how listed comparables are valued. I expect several high-profile downrounds on the continent this year.”
While more than a third of African start-up funding was for FinTechs last year, the trend is shifting, Mr Sonneborn said.
Health technology, climate and farming technology will attract funds this year, he added.
Investment has been concentrated in four of the continent’s more developed markets — Egypt, Nigeria, Kenya and South Africa — which are battling economic challenges from slowing growth to currency depreciation. That may hit financing opportunities, according to Briter Bridges’ Mr Giuliani.
The Egyptian pound is at a record low, while the Nigerian economy is reeling under rising debt and its currency is weakening.
Ghana and Kenya have also seen their currencies depreciate.
“While in 2021, companies were encouraged to grow at all costs, they now are focused on preserving cash, reducing burn and delaying their next round as long as possible,” Mr Sonneborn said.
Shares of African start-up Jumia Technologies, which trade in New York, have fallen about 68 per cent in the past 12 months and the company’s founders quit in November.
Chipper Cash and Wave were also affected by the collapse of Sam Bankman-Fried’s FTX, which had invested in both.
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
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The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
if you go
The flights
Etihad and Emirates fly direct to Kolkata from Dh1,504 and Dh1,450 return including taxes, respectively. The flight takes four hours 30 minutes outbound and 5 hours 30 minute returning.
The trains
Numerous trains link Kolkata and Murshidabad but the daily early morning Hazarduari Express (3’ 52”) is the fastest and most convenient; this service also stops in Plassey. The return train departs Murshidabad late afternoon. Though just about feasible as a day trip, staying overnight is recommended.
The hotels
Mursidabad’s hotels are less than modest but Berhampore, 11km south, offers more accommodation and facilities (and the Hazarduari Express also pauses here). Try Hotel The Fame, with an array of rooms from doubles at Rs1,596/Dh90 to a ‘grand presidential suite’ at Rs7,854/Dh443.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
UAE currency: the story behind the money in your pockets
The five stages of early child’s play
From Dubai-based clinical psychologist Daniella Salazar:
1. Solitary Play: This is where Infants and toddlers start to play on their own without seeming to notice the people around them. This is the beginning of play.
2. Onlooker play: This occurs where the toddler enjoys watching other people play. There doesn’t necessarily need to be any effort to begin play. They are learning how to imitate behaviours from others. This type of play may also appear in children who are more shy and introverted.
3. Parallel Play: This generally starts when children begin playing side-by-side without any interaction. Even though they aren’t physically interacting they are paying attention to each other. This is the beginning of the desire to be with other children.
4. Associative Play: At around age four or five, children become more interested in each other than in toys and begin to interact more. In this stage children start asking questions and talking about the different activities they are engaging in. They realise they have similar goals in play such as building a tower or playing with cars.
5. Social Play: In this stage children are starting to socialise more. They begin to share ideas and follow certain rules in a game. They slowly learn the definition of teamwork. They get to engage in basic social skills and interests begin to lead social interactions.
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