In 2022, domestic start-ups in Ghana achieved a remarkable milestone, raising a record-breaking $212 million in capital, as reported by the Ghana Innovation Ecosystem Report 2022.
Notably, 71 percent of the total start-up funding was sourced from venture capital firms, with financial technology firms (Fintechs) emerging as the favored sector, accounting for 46 percent of the investments. The report highlighted that 45 percent of the capital was raised by early-stage start-ups, including pre-seed and seed companies. Furthermore, the report revealed that around 15 established start-ups expanded their operations across 11 countries in Africa.
Among the successful start-ups, mPharma, a healthtech company, secured the highest individual capital investment of $35 million. Additionally, Ghana maintained its position as the fifth-largest venture capital market on the African continent.
However, the report also shed light on gender disparities in fundraising, with only a meager eight percent of the total funding going to female-led start-ups. Teams with gender diversity managed to raise nine percent of the funding, while female-only teams received only 0.2 percent of the total investment.
Commenting on this development, Prof. Elikem Nutifafa Kuenyehia, Chairman of Keystone Solicitors, emphasized that the opportunities in the Ghanaian tech space are a well-kept secret in global tech investing. He expressed optimism for the future, hoping to see more diversified groups of investors supporting Ghanaian start-ups and growth companies, not solely limited to tech ventures.
Ama Gyampo, Co-founder and CEO of ScaleUp Africa, a business development services provider, showed confidence in the emergence of disruptive ventures, active local fund managers, and women-led businesses. She mentioned the anticipation of a fund of funds, a blended finance vehicle seeking to unlock $75 million in funding for local capital providers, specifically aimed at advancing the Sustainable Development Goals through SME investments.
Gideon Brefo, CEO, and co-founder of hapaSpace urged local innovators to collaborate with both domestic and foreign partners, cautioning against missing opportunities that may be seized by people in the diaspora returning to conduct business in Ghana. He foresaw an increase in ecosystem activities due to the growing interest of the diaspora in the country’s business landscape.
Source : thebeftonline