Funding for women-led healthtech ventures grew more than 2,000% in Africa, going from a marginal share of 1% in 2022 to 31% of the total funding in 2023, finds a new report by Salient Advisory; a healthcare consulting firm enabling impactful approaches to the African health sector.
While the number of deals remained steady, funding in women-led healthtech saw a significant shift. These companies secured $52m in 2023, eclipsing the $2m they received in 2022, the report highlights as part of its key findings.
Salient Advisory’s latest Intelligence Report, “2023 RoundUp: Investments in African HealthTech” delves into funding activities, covering grants, equity, and debt investments for African healthtech startups in 2023. Funded by the Bill & Melinda Gates Foundation, the report offers insights for governments, investors, donors, and global health institutions.
Despite a drop in investments in African startups mirroring global trends, healthtech showcased resilience, experiencing only a 2% dip compared to a 39% decline in the broader ecosystem. In 2023, African healthtech saw a 17% YoY increase in deals, reaching 145, with a total funding of $167m and an average ticket size of $1.1m. Notably, 114 innovators received funding, with 23 securing multiple investments.
Online pharmacy solutions dominated investor interest, capturing 38% ($63m) of total funding, driven by Series B rounds from Kenyan startups Kasha ($21m) and MyDAWA ($20m), along with Egypt’s Yodawy ($16m). Electronic medical records solutions followed closely, led by Helium Health’s $30m Series B funding.
Equity investments dominated, contributing 91% of total funding with an average deal size of $3.2m, surpassing grants, which made up only 7% of capital with an average ticket size of $168,000. Debt funding remained rare, with one recorded debt-based investment in 2023.
While merger and acquisition activity doubled in the past year, with four key transactions, the future funding outlook remains strong. Despite economic challenges, investors with an interest in African health systems announced over £600m in new funding.
Yomi Kazeem, engagement manager at Salient Advisory, highlighted the resilience of African healthtech innovations, emphasising the need for sustained strategies to ensure equitable funding. Dr. Analía Porrás from the Bill & Melinda Gates Foundation commended African healthtech’s resilience and expressed optimism for increased confidence and funding from investors and donors.