Funding for women-led health startups experienced a staggering surge of over 2,000% in 2023, reaching a total of $167 million, according to a report sponsored by the Bill and Melinda Gates Foundation and conducted by Salient Advisory. The report revealed that companies founded exclusively by women secured $52 million, accounting for 31% of the total funding. This is a remarkable increase compared to the mere $2 million received by women-founded companies in the previous year, representing a meager 1.4% of overall investment. Notably, the healthtech sector witnessed a 2% decrease in funding from the previous year, while African technology firms faced a daunting decline of 39%. Among the most successful female-led tech companies in 2023 were Kasha, Dawi Clinics, Chefaa, and Maisha Meds. Kasha, in particular, a seven-year-old African health-tech company, raised an impressive $21 million in Series B funding, marking the largest investment to date for a female-led health-tech startup on the continent.
The report also shed light on the number of agreements within the African healthtech sector, which increased by 17% to a total of 145, with an average deal size of $1.1 million, representing a 15% drop from the previous year. Equity investments dominated the funding landscape, accounting for 91% of all investments made in 2023. The report highlighted that $4.8 million was invested across 27 pre-seed stage startups, while $32 million was invested in 23 seed stage deals. Additionally, Series A or higher stages attracted $99 million across seven deals, with grants constituting less than 10% of the total funding invested. Notably, only one debt-based investment was recorded.
The report indicated that a total of 114 companies received funding in 2023, with 23 of them securing multiple investments throughout the year. Online pharmacy solutions emerged as the frontrunner, capturing 38% of all funding in the healthtech sector. Among the countries receiving the most funding on the continent were Nigeria, Kenya, and Egypt. However, it is worth noting that while funding for Francophone Africa-based innovators remained relatively low, it experienced growth from $5.8 million in 2022 to $9.6 million in 2023, propelled by investments in companies like Susu and Waspito.
The significant increase in funding for women-led health startups indicates a positive trend toward promoting gender diversity and inclusion within the healthcare and technology industries. However, there is still ample room for improvement. By continuing to support and invest in women-led startups, more opportunities for innovation and progress can be unlocked in the health sector across the African continent and beyond.
