A recent research report highlighted that funding for healthtech led by women experienced remarkable growth, increasing by over 2,000%. In 2022, women-led healthtech accounted for a marginal share of 1% in total funding, but this figure surged to 31% in 2023. The report, titled “2023 RoundUp: Investments in African HealthTech,” was launched by healthcare consulting firm Salient Advisory.
The research focused on grant, equity, and debt investments in African healthtech startups, providing valuable insights for various stakeholders, including governments, investors, donors, and global health institutions. The report, funded by the Bill & Melinda Gates Foundation, indicated that while overall investments in African startups experienced a decline in 2023, healthtech demonstrated resilience with only a 2% dip, compared to the broader ecosystem’s 39% decline. The number of deals in African healthtech increased by 17% YoY to reach 145, with a total funding amount of $167 million and an average ticket size of $1.1 million.
The report revealed that online pharmacy solutions attracted the majority of investor capital, securing 38% ($63 million) of all funding raised. Equity investments dominated, constituting 91% of the total funding, with an average deal size of $3.2 million. Grants contributed 7% of the capital, with an average ticket size of $168,000, playing a crucial role in enabling early-stage funding for innovators. Debt funding remained rare, with only one debt-based investment tracked in 2023.
Despite broader economic challenges, the report indicated a positive outlook for future funding, with over $600 million in new funding announced by investors interested in African health systems. The report highlighted the increased funding for women founders as a significant development, emphasizing the need for investors to prioritize sustaining strategies that ensure equitable funding across founders.
Dr. Analía Porrás, Deputy Director of Global Health Agencies and Funds at the Bill & Melinda Gates Foundation, acknowledged the resilience of African healthtech and expressed hope for increased confidence and funding from investors and donors in the future.
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Joan Aimuengheuwa From the News Source: Techeconomy
