2K% Increase in Funding for Women-Led African Healthtechs

2023 proved a transformative period for women-led healthtech companies in Africa, with funding totaling $52 million. The dramatic 2000% increase in funding over the past five years was highted in Salient Advisory’s Market Intelligence report titled 2023 Roundup: Investments in African Healthtech.

This milestone underscores the growing investor confidence in innovative healthcare solutions driven by women entrepreneurs, addressing critical health challenges on the continent.

The surge in funding is partly attributed to global recognition of the unique challenges women in Africa face, including limited access to healthcare and financial services. Women-led startups are often better equipped to address these needs, leveraging firsthand insights to create tailored, impactful solutions. With the rising focus on digital health and mobile solutions, these companies have demonstrated potential to improve healthcare accessibility and outcomes, particularly in underserved regions.

For investors, this trend indicates a promising opportunity to support scalable, impactful innovations while advancing gender equality. For entrepreneurs, the success of these ventures highlights the importance of persistence, innovation, and leveraging partnerships to navigate structural barriers. This momentum is expected to catalyze further investments, creating a virtuous cycle of innovation and empowerment in African healthtech.

The report provides insights into the funding landscape for African healthtech, which secured $167 million through a mix of equity, grants, and debt funding. While overall funding in the sector experienced a slight 2% decline, healthtech proved more resilient compared to the broader African tech ecosystem, which saw a steep 39% drop in investment.

The number of deals in the African healthtech space increased by 17% to 145, but the average deal size fell by 15% to $1.1 million. Notably, 78% of startups raised less than $1 million in individual rounds. In total, 114 healthtech innovators secured funding during the year, with 23 receiving multiple rounds of investment. This data highlights the sector's adaptability and continued appeal, despite challenges in the wider funding environment: the broader African tech ecosystem saw a substantial 39% drop in funding over the same period.

What does this mean for innovators and investors in Africa?

This report on African healthtech funding offers critical insights for both innovators and investors on the continent. For innovators, it signals resilience in the healthtech sector despite broader economic challenges. The increase in the number of deals (17%) suggests growing investor interest in healthtech solutions, even if the average deal size has declined. This trend highlights the need for entrepreneurs to focus on scalable, impactful, and cost-effective innovations that can attract smaller but more frequent investments. The prevalence of early-stage funding opportunities (with 78% of deals under $1 million) underscores the importance of crafting compelling value propositions for seed and pre-series funding rounds.

For investors, the report identifies African healthtech as a promising yet underserved opportunity. Despite a marginal overall funding decline, the sector's ability to weather a broader 39% funding drop in tech demonstrates its critical importance and market potential. With diversified funding sources, including equity, grants, and debt, investors have various avenues to engage with the sector. The trend of multiple funding rounds for certain startups (23 companies in 2023) reflects confidence in the scalability and sustainability of healthtech innovations.

Overall, the report highlights the potential for healthtech to address systemic healthcare challenges in Africa while offering attractive opportunities for investment in a growing and resilient sector. For both parties, collaboration, and alignment around measurable health outcomes will be key to maximizing impact and returns.

Read the full report by Salient Advisory here.

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