Debt now makes up four in ten dollars of African startup funding
- African startups raised $1.44 billion in the first half of 2026, slightly up from $1.42 billion in the same period of 2025.
- The number of disclosed deals fell from 252 to 146, indicating a decline in the number of companies receiving funding.
- Debt accounted for 42.6% of the total money raised, with $614 million in loans compared to $818 million in equity.
The increasing reliance on debt over equity among African startups suggests a shift in funding strategies that could impact long-term growth and innovation. While debt can provide immediate capital without diluting ownership, it raises concerns about the sustainability of cash flows, especially for early-stage software companies. This trend warrants further examination of how startups can balance growth with financial health in a competitive market.
