African Startup Funding Holds Steady as Investors Back Fewer, More Established Companies
- African startups raised an estimated $1.3 billion to $1.4 billion in H1 2026.
- Only 146 funding deals were completed in the first half of 2026, down from 252 in the same period in 2025.
- Investors favored established businesses with proven revenue models and physical infrastructure.
The funding landscape for African startups appears to be shifting towards a more selective approach, favoring established companies over early-stage ventures. This trend could stifle innovation and diversity in the startup ecosystem, as emerging businesses may struggle to secure necessary funding. It raises questions about the long-term implications for the growth and sustainability of the startup sector in Africa.
