At the start of 2026, Africa’s startup funding market appeared to be on firmer footing. Startups across the continent raised $711 million in the first quarter, up roughly 27% from the same period a year earlier, suggesting the recovery that began in 2025 was gathering pace.
Beneath the headline features, however, the picture was less encouraging. The number of deals worth between $100,000 and $500,000 fell from 140 to 92, a decline of around 30%. The early cheques that help bring startups into existence dropped even more sharply, from 73 to 32. For the first time in recent quarters, debt financing also overtook equity funding.
The data suggests many investors slowed down in their funding of early-stage startups. Launch Africa Ventures did the opposite. The pan-African venture capital firm, whose portfolio now spans more than 180 portfolio companies across 25 countries, says it completed 15 new investments in 2026, focusing on the very early-stage cheque sizes much of the market has retreated from.
Launch Africa’s 2026 cohort spans AI, the future of work, B2B commerce, supply chain, and embedded finance across Francophone, North, West, and Southern Africa. The named investments are Udu Technologies, Fincart, Tayar, Khaime, Anavid, Mainstack, Growwr, Yamify, Legendary Foods, and Masunga.
