Although investments into Africa’s burgeoning tech ecosystem have been on the rise recently, 76% of the total funding during the 8-year period went to startups led by all-male teams. One factor responsible for the disparity in funding is that male and female founders typically choose different financing routes. For instance, female founders are more inclined to seek bank loans rather than equity investments, albeit with little success. Meanwhile, startups with all-male teams are most likely to attract both equity and debt financing.
The report observed that female tech startup founders are noticeably fewer in certain subsectors like the fintech space, which is known to attract the most investments. There are more male founders competing with fewer female founders.