In recent weeks, tech media has been awash with coverage ofÂ falling startup valuationsÂ and sell-offs of once-booming stocks in vibrant sectors.
May 2022 is the first time in over a year that globalÂ VC funding has fallenÂ under $40 billion, standing atÂ $39 billionÂ according to industry trends analytics company, Crunchbase. This is down 20% from $49 billion a year earlier in May 2021 and far below the $70 billion peak of November 2021.
In the first quarter of 2022, the US and Asia both recorded 1% year-on-year declines in venture funding. Europe and Latin America saw growth of 33% and 35% respectively.
Africa though tells a different story. According toÂ Africa-focused databaseÂ The Big Deal, Africa was the only region to record three-digit growth in the first quarter of 2022, with venture funding up 150% to hit a record $1.8 billion compared to $730 million in the same period in 2021.
Kenya alone attracted more venture funding in the first three months of 2022 ($482 million) than it did in all of 2021 ($412 million).
Why is Africa seemingly defying global trends? And how long will it last?
For more on this story, click HERE