African Start‑ups’ Fundraising Kicks Off the Year on a Weak Pace
January 2026 – only $174 million raised, exposing persistent imbalances and chronic under‑financing of early‑stage ventures as the ecosystem reaches a pivotal moment.
📉 A Quiet Start to the Year
| Year | Amount Raised in January | % vs. Monthly Avg. (last 12 mo) |
|---|---|---|
| 2026 | $174 M | ‑ 15 % (average $263 M) |
| 2025 | $276 M | — |
| 2024 | $85 M | — |
| 2023 | $106 M | — |
January is traditionally a slow month for venture capital (VC) in Africa and elsewhere. Deals often roll over from late‑year closings, and investors tend to be more cautious.
- Number of deals: only 26 startups announced a “significant” raise – the lowest monthly count since 2020.
- Implication: Capital access is becoming increasingly restricted for a large part of the ecosystem.
🎯 Extreme Concentration of Funding
The market is highly polarized:
| Deal | Country | Type | Amount |
|---|---|---|---|
| FinTech | Egypt | Bank debt | $64 M |
| Mobility start‑up | Nigeria | Equity + debt | $24 M |
| Other 4 firms | – | – | > $10 M each |
| Remaining deals | – | – | Marginal amounts |
- Two deals account for nearly 50 % of total capital.
- The “Big Four” – Egypt, Nigeria, Kenya, South Africa – capture > 80 % of all funds.
- 20+ African countries recorded no deal above $100 k in 2025, underscoring persistent market exclusion.
🍼 Pre‑seed Under‑financing Remains Critical
- Only 1.5 % of total VC money went to the pre‑seed stage, despite 281 companies receiving $46.5 M.
- Active pre‑seed investors fell from 200 (2022) to 135 (2025).
- Grants now represent 42 % of capital at this stage.
👩💼 Persistent Gender Inequalities
- Women‑only founded startups captured < 1 % of total raised capital.
- Mixed‑gender teams are still under‑represented.
- The scarcity of mid‑size tickets ($1‑5 M) deepens the “valley of death” for many founders, especially women.
🔍 Key Takeaways for 2026
- Geographic concentration – funding remains clustered in a handful of economies.
- Size polarization – a few mature players secure large rounds; the majority are left out.
- Rising reliance on grants – especially at the pre‑seed level, indicating a fragile financing pipeline.
- Talent is abundant, but the financial model is incomplete.
The growth observed in 2025 is not guaranteed. It will hinge on the ability of investors, public institutions, and entrepreneurs to broaden the financing pipeline—from pre‑seed to exit.
📚 Further Reading
Ecosystem of Start‑ups: Administrative Simplification at the Heart of Expectations – La Presse
Keywords: African startups, venture capital, fundraising 2026, pre‑seed financing, gender inequality, investment concentration, Big Four Africa.
