African start-ups have raised 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).

African startups attracted nearly fivefold investment after a low point related to the COVID-19 pandemic in 2020. According to data released Tuesday by the industry group the amount of venture capital amounts to $5.2 billion in 2021. Investors have been mostly interested in fintech startups that seek to address the needs of Africa's largely unbanked population. The financial sector accounted for 60% of investments by value and nearly a third of deals by volume, data collected by AVCA shows.

Nigeria, a hotbed of fintech startups, was the top destination for venture capital in Africa 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 funding (funding focused on business expansion).