A new insight report on Ethiopia’s startup landscape reveals the concentration of funding in a few standout firms while the ecosystem combined has a total enterprise valuation of $302 million.
The Report prepared by GrowthAfrica and Systemic Innovation under an FCDO-supported Research and Innovation Systems for Africa (RISA) Fund project relays interesting figures into Ethiopia’s entrepreneurial ecosystem.
After assessing data compiled from 562 companies, of which 489 are startups, through Dealroom, the Report indicates that no firms crossed the $200 million valuation until 2024. Companies founded between 2015 and 2020 are key drivers of value, starting with a modest $6 million value in 2016, growing to $157 million by 2019, and peaking at $182 million in 2022.
The report, dubbed The State of Startup Innovation in Ethiopia, also explores investment trends, employment contributions, enterprise valuations, and sector-specific activity. However, it includes businesses that may not fully meet the definition of a startup.
Scott Walker, CEO of Systemic Innovation, explained in an email to Shega that the report aims to present a holistic view of the entrepreneurial ecosystem. According to Walker, startups defined as firms less than 10 years old were the primary focus, as requested by the government.
“Our approach also considers the broader ecosystem by utilizing Total Enterprise Value (TEV), a globally recognized standard, to ensure consistency across businesses of varying sizes and stages,” he stated.
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