African Startups Raise $2.4bn in Funding in 10 Months, Down 12%

By Adedapo Adesanya

African start-ups raised $2.4 billion in funding between January and October 2026, representing a 12 per cent decline from the $2.7 billion secured in the corresponding period of 2025.

This is according to the latest funding report by Africa: The Big Deal, which tracks investments of $100,000 and above in start-ups across the continent.

The report showed that 343 start-ups attracted funding during the 10-month period, compared with 438 ventures recorded in the same period last year, representing a 22 per cent decline.

The number of active investors participating in the African start-up ecosystem also fell by 16 per cent to more than 370 from over 442 in January to October 2025.

A breakdown of the funding showed that equity investments accounted for $1.6 billion, representing a five per cent increase from the previous year’s figure, while debt financing declined by 33 per cent to $740 million from $1.1 billion.

The performance suggests that although equity investment has remained relatively resilient, the broader funding environment has weakened, with fewer start-ups securing capital and fewer investors participating in deals.

In October alone, 34 African start-ups raised a combined $183 million, excluding exits, representing a 24 per cent decline from the $241 million recorded in September.

The October figure was also 29 per cent below the average monthly funding of $259 million recorded 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.

Geographically, Nigerian start-ups 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.

The report noted that start-ups outside Africa’s traditional Big Four markets of Nigeria, Kenya, Egypt and South Africa accounted for 54 per cent of October’s funding, the highest monthly share since November 2022.

Looking ahead, Africa: The Big Deal said start-ups 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.