Despite a funding slowdown in 2023, Africa's technology sector continues to attract investors, with a major company closing a new fund dedicated to the continent's burgeoning startups. 

Technology investment firm Partech has closed its second Africa-focused fund, Partech Africa 2, at 280 million euros (over 300 million USD), the company announced on Monday.

The fund, exceeding its initial target, received strong backing from existing investors, with nearly all participants from Fund I reinvesting and some increasing their commitments. Partech also attracted new strategic investors from the US, Middle East, and Africa, marking their first foray into the continent's tech scene.

Partech Africa 2 will target investments ranging from $1 million to $15 million across various stages, from seed rounds to Series C fundraising. The firm aims to support approximately 20 startups across the continent.

"We are grateful for the support and commitment of our investors: almost all Fund I investors reinvested and some, more than doubled their commitment. [...] We are also honored to get the support from a new set of strategic investors from the US, the Middle East, and Africa, and for some of whom, this marks their first commitment in African Tech," said Cyril Collon, General Partner at Partech.

This announcement comes despite a 54% decline in VC funding for African startups in 2023, according to Partech Africa's "2023 Africa Tech Venture Capital" report released in January 2024. However, the firm emphasizes that the sector's attractiveness remains undimmed, citing consistently high investment amounts and the influx of new players like themselves.

Partech has also opened a new office in Lagos, Nigeria, to deepen its African presence, joining its existing locations in Dakar, Senegal, and Nairobi, Kenya. The new fund has already invested in three startups: a real estate platform in Egypt, a payment orchestration firm in South Africa, and an e-commerce platform in Senegal.

Adoni Conrad Quenum