Women-led health tech startups in Africa ‘secured $52m funding’ in 2023

Salient Advisory, a healthcare consulting firm, says women-led health technology (health-tech) funding increased by over 2000 percent in 2023.

The firm disclosed this in its latest report titled  ‘2023 RoundUp: Investments in African HealthTech’.

The report, funded by the Bill and Melinda Gates Foundation, contained findings on funding activity, grants, equity, and debt investments for African health-tech startups in 2023.

“Women-led companies secured $52 million in funding –31% of all investments in 2023. This represents a 2000% YoY increase compared to the $2 million (1.4%) they received in 2022,” Salient Advisory said.

According to the report, 114 innovators received funding in 2023, with 23 receiving multiple investments in the year.

“While investments in African startups plummeted last year, mirroring global trends, healthtech showed resilience, experiencing only a 2% dip compared to a staggering 39% decline in the broader ecosystem,” Salient Advisory said.

In the report, the firm said the number of deals in African health tech rose 17 percent year-over-year (YoY) to 145, with total funding of $167 million and an average ticket size of $1.1 million.

“The number of deals for women-led companies remained relatively steady (26 in 2022 vs. 33 in 2023), however, the amount of funding saw a dramatic shift as the gender gaps significantly narrowed,” the firm said.

Salient Advisory said online pharmacy solutions attracted the majority of investor capital, capturing 38 percent ($63 million) of all funding raised.

The funding, according to the firm, was driven by Series B, which included funding rounds by Kenya’s Kasha ($21 million) and MyDAWA ($20 million), and Egypt’s Yodawy ($16 million). 

Also, electronic medical records solutions were next as the second-best funded category, driven by Helium Health’s $30 million Series B funding round.

“Equity investments accounted for 91% of total funding with an average deal size of $3.2 million,” the report added.

“This significantly outpaced grants, which only contributed 7% of capital with an average ticket size of $168,000. 

“However, grants continue to play a crucial role in enabling access to early-stage funding for innovators to test and validate their business models. Debt funding remains rare as only one debt-based investment was tracked in 2023.”

Commenting further, Salient Advisory said the year under review witnessed a rare merger and acquisition activity which doubled in the past year with four key transactions.

“The prospect of future funding also appears strong as, despite broader economic headwinds which suggest a slowdown in funding for technology startups, over $600 million in new funding was announced by investors with an interest in African health systems,” the firm said.

Speaking on the report, Yomi Kazeem, engagement manager at Salient Advisory, said African health tech had been resilient amid difficult headwinds.

“The increased funding for women founders is a high point and, in coming years, investors must prioritise sustaining strategies that ensure equitable funding across founders,” Kazeem said.

On his part, Analía Porrás, deputy director, global health agencies and funds, Bill & Melinda Gates Foundation, said African health-tech solutions have the potential to transform health systems across the continent.

Porrás said the foundation is glad to play the role of providing innovators with risk-tolerant capital and hopes to see the current resilience translate into increased confidence and funding from investors and donors.