Africa startup funding falls 26.6% despite increase in deals

By Abubakar Yunusa

Startup funding activity across Africa remained subdued in April 2026 as investors continued to focus on a smaller group of high-performing firms despite a wider spread of deals across the continent.
Data showed that 34 startups raised a combined $110.4m during the month, while one startup did not disclose its funding figure.
The development reflected growing investor caution amid tighter liquidity conditions and increasing preference for startups with sustainable business models.
Although the number of deals recorded in April surpassed that of March, overall funding volumes weakened further during the period.
Analysis of the disclosed transactions showed that the top 10 startups attracted $97.6m, representing 88.41 per cent of the total capital raised in April.
African startups had raised $150.5m across 27 deals in March 2026, indicating that total funding declined by $40.1m month-on-month.
The figures represented a 26.6 per cent drop in funding value despite improved deal activity.
The number of transactions rose from 27 in March to 34 in April, suggesting that investor participation became more distributed across startups.
However, larger funding rounds remained concentrated among a relatively small group of companies.
Funding secured by the top 10 startups also dropped from $143.9m in March to $97.6m in April.
Their share of total funding declined from 95.61 per cent in March to 88.41 per cent in April, indicating a slight broadening in capital distribution across the ecosystem.
Industry analysts said the trend underscored the cautious approach adopted by investors as startups across Africa grapple with tougher fundraising conditions and pressure to demonstrate profitability.