Top of mind: Happy Sunday!
It turns out, not everyone’s affected by the decline of startup fundraising. Kenya seems to be flourishing in the middle of a money drought.
Let’s get to it.
3 big things:
- Kenya’s money reign
- Elon’s backup plan
- Spotify’s big move
Kenya is the king of fundraising!
The short: Kenyan startups recorded the highest funding growth, beating Africa’s top startup cities by banking close to $1 billion in the first half of 2022.
African growth: Comparatively, Nigeria received the most funding this year, signing 160 deals for $864 million in VC funding. Kenya received $820 million through 76 deals, Egypt received $538 million through 71 deals, and South Africa received $392 million through 53 deals.
However, in terms of growth – Kenya comes first, with a mouthwatering 422% increase in funding raised compared to the first half of last year. Egypt is in the second position with a growth rate of 244%, Nigeria is third with a growth rate of 128%, and South Africa is fourth with a growth rate of just 2%.
Big deals: Kenya’s Flash-like growth rate wouldn’t have been possible without closing significant deals. Sun King, a solar supplier with operations in Africa and Asia, received $260 million in series D. While, Wasoko, a business-to-business e-commerce and retail platform, had received $125 million in series B funding.
Final thoughts: African startups still raking in major funding in the middle of massive layoffs and hiring freezes is refreshing. It’s a tough time, but I’m rooting for the continent and the success of its businesses.
Elon Musk’s back up plan
The short: Elon Musk sold Telsa stock worth around $6.88bn in preparation for a scenario where he’s forced to buy Twitter.
Story so far: Shortly after becoming the largest shareholder in Twitter, Musk made a play to acquire the company for $44bn. In a shocking twist, he attempted to back out of the deal, citing dishonesty on Twitter’s side. Twitter struck back…
Gettin’ served: In July, Twitter filed a lawsuit accusing Musk of operating in “bad faith” throughout his acquisition of the social network. They alleged the Tesla CEO began to back out of the agreement once “the market started turning.”
Later that month, Musk filed a counter-suit in retaliation, claiming that his team “fully expected that Twitter would hide nothing from its would-be owner, including the magnitude of its false or spam accounts problem.” Musk accused Twitter of trying to mislead him deliberately and overestimating their daily active users.
Backup plan: Despite halting stocks sales after a stunning $8.5 billion cashout in April, Musk recently sold 7.92 million shares of Tesla valued at around $6.88 billion in the event Twitter forces this deal to close and current equity partners don’t come through – which is highly likely.
Friendly fire: How are Musk’s billion-dollar withdrawals affecting Tesla? At the close of trade on August 4, Tesla shares were worth around $938. By the 9th, after the withdrawal, they were worth about $850 – a 9% decrease in value.
The share price declines when Elon milks his billion-dollar cow. If you’re a Telsa shareholder like myself, you know it’s an uphill battle. The CEO’s tweets and erratic behaviour create uncertainty for the company’s stock, and his shareholders must duck from the fire.
Final thoughts: Musk’s trial starts in October. It’s been a wild journey, and I’m at the edge of my seat for the ruling – will he be forced to buy Twitter or walk?
Spotify’s selling concert tickets
The short: Spotify is testing a new service for selling concert tickets directly to fans.
Branching out: Although Spotify dominates the music business, the streaming service continuously seeks new ways to deepen its grip. For example, Spotify is now testing a feature allowing users to buy concert tickets straight from the site rather than ticket distribution companies like Ticketmaster or Eventbrite.
Cutting loose: One must wonder what will become of Spotify’s partnerships with Ticketmaster, AXS, Dice, Eventbrite, and See Tickets, which were accessible via the Live Events page.
The concert ticketing market has proven to be a profitable idea – which is why a few months after partnering with Snapchat, Ticketmaster announced that customers would be able to purchase concert tickets straight through TikTok. But now, Spotify is in the game and probably gunning for the throne.
Paving the path: Spotify’s new website for selling concert tickets has a limited selection of upcoming US-based concerts. Buyers are supposed to create a Spotify account to buy tickets. The official page says that Spotify sells tickets on behalf of third parties, including venues and event promoters.
Final thoughts: It’s a smart and unsurprising move. Competitors like Ticketmaster and Eventbrite have to watch out for the new kid on the block. I’m all for ease, as long as we keep getting better and cheaper ways to get concert tickets.
That’s it for the week. I’d love to hear your thoughts about this week’s issue. Please respond to this email or find me on Twitter @fatuogwuche 🙂
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See you next Sunday! 🎉