$2.4 billion was raised by African startups in the first ten months of 2026, down 12% from the $2.7 billion secured in the same period last year. The decline reflects broader challenges in the continent’s startup ecosystem, according to the latest data from Africa: The Big Deal, which tracks investments of $100,000 or more.
The number of funded startups also dropped, with 343 ventures raising capital this year compared to 438 in 2025—a 22% decline. Investor participation fell 16%, with fewer than 370 active investors involved this year versus over 442 in 2025.
Equity investments remained relatively stable, accounting for $1.6 billion, a 5% increase from 2025, but debt financing fell sharply, dropping 33% to $740 million from $1.1 billion the prior year. The performance suggests that although equity investment has remained relatively resilient, the broader funding environment has weakened, with fewer startups securing capital and fewer investors participating in deals.
October 2026 saw 34 startups raise $183 million, excluding exits, marking a 24% drop from September’s $241 million. The month’s total was also 29% below the $259 million monthly average over the preceding 12 months. The report attributed the relatively weak performance partly to the absence of mega-deals recorded in October 2025, when electric mobility company Spiro raised $100 million and Nigerian fintech firm Moniepoint secured $90 million.
Nigerian startups attracted the highest funding in October, raising $42 million across nine ventures, largely through debt deals in the energy and mobility sectors. Morocco and Tanzania followed with $40 million each, while Egypt attracted $19 million and Senegal secured $13 million. Notably, startups outside Africa’s traditional Big Four markets, Nigeria, Kenya, Egypt, and South Africa, accounted for 54% of October’s funding, the highest monthly share since November 2022.
Looking ahead, Africa: The Big Deal said startups would need to raise $814 million in November and December to match the $3.2 billion recorded throughout 2025. This compares with the $496 million raised during the final two months of last year, making it unlikely that the continent will match its previous year’s total. However, the report said 2026 could still become the strongest year for equity funding since 2022, as only an additional $338 million is required to surpass the $1.9 billion raised through equity investments in 2025.
