Investor activity within a startup is not dependent on its past or present but rather the future of the business. Many startups therefore work hard on their pitch decks to show where the company is coming from and where it is headed. While investment firms, accelerators and angel networks participate in funding of startups at an early stage, not all follow on funding in later rounds. Blog.gust.com highlights several factors that contribute to investors, particularly Angel investors’ “one and done '' investment strategy including investing in businesses that fail or the progressive reduction in return for every round.
Digest Africa data indicates that Seed, Early and Late Venture rounds have raked in $3.7B across over 1400 rounds by startups in Africa across all time. The funding rounds have brought onboard new investors, maintained some and lost participation of others as well. Of all sectors, the Fintech sector has the highest count with 383 startups that have received a follow on funding. This is not surprising as this is the sector that has attracted the most venture funding historically in the startup space in Africa.
Below we list 38 startups that have raised more than one round with follow-on subsequent rounds from the same investors in alphabetical order. Here are some takeaways:
- The investors listed have participated in two (2) or more venture rounds.
- CRE Venture Capital, Omidyar Network, CDC Group and Goodwell Investments have made a follow on funding for more than one startup in the list.
- Andela, Asoko Insight, Jumia Group, Jumo and OPay have the highest number of consistent investors with at least 4 participating in more than one round.
- Financial Services, which has recorded the highest level of growth in the continent has the most number of startups featured on the list (10 startups.)
- Nigerian based startup OPay is the youngest startup receiving follow on funding (founded in 2018.)