Incancan start-ups have drained a record $5.2 billion in venture capital in 2021. This data was revealed in a report by the African Private Equity and Venture Capital Association (AVCA).

Incancan start-ups have attracted almost quintupled investment after a trough related to the COVID-19 pandemic in 2020. According to data published Tuesday by the industrial group, the amount of venture capital amounts to $ 5.2 billion in 2021. Investors have been most interested in fintech start-ups that seek to meet the needs of Africa's largely unbanked population. The financial sector accounted for 60% of investments by value and nearly a third of transactions by volume, data collected by the AVCA show.

In nigeria, home to young fintech companies, was africa's top venture capital destination last year, surpassing South Africa, the continent's most developed economy. Fintechs Chipper Cash, MFS Africa, Yoco, and OPay collectively raised $833 million in Series C financings (financing focused on business expansion).