EdTech funding decline takes centerstage at Mastercard Foundation conference
- EdTech startups in Africa secured only 1.4% of the continent's 2023 VC funding.
- The lack of funding has led to smaller deal sizes and a dearth of exits.
- Challenges include infrastructure limitations, low deal sizes compared to FinTech peers, and the need for patient capital.
The lack of venture capital funding for EdTech startups in Africa is a concerning issue that hinders the growth and potential impact of the sector. Without sufficient funding, these startups face challenges in scaling their operations and achieving sustainable business models. It is crucial for investors to prioritize long-term impact and provide patient capital to support the development of the EdTech sector in Africa.
