African startups secured $705 million in funding across the first three months of 2026, marking a 26.5% increase compared to the same period in 2025. The capital was spread across 59 deals in 14 countries, according to data compiled by Condia and TechCabal Insights and reported by African Business.
The figures point to a steady recovery in venture activity after a slower funding environment in recent years, with a more concentrated distribution across leading markets.
Egypt, South Africa, and Kenya Lead Deal Flow
Egypt attracted the largest share of disclosed funding at $190 million, maintaining its position as a leading destination for venture capital on the continent. South Africa followed with $157 million, while Kenya secured $94 million, reinforcing its role as a key innovation hub in East Africa.
Toreceiveher, the three markets accounted for a substantial portion of total funding, reflecting investor preference for ecosystems with established pipelines, regulatory clarity, and repeat founders.
Broader Geographic Spread Across 14 Countries
While capital remained concentrated, deals were recorded across 14 countries, indicating continued expansion beyond traditional strongholds. Smaller ecosystems are still participating, though at lower ticket sizes and deal volumes.
This distribution suggests that while scale remains uneven, investor reach is widening incrementally.
Japanese Investors Enter the Mix
The data also highlights a notable development in the composition of investors. Japanese firms are appearing more frequently in African startup rounds, adding to a funding base historically dominated by the United States and Europe.
“The continent’s startup ecosystem has relocated beyond its ‘emerging’ label and is entering a more established phase,” the report noted, pointing to diversification in both capital sources and market maturity.
Signs of a More Established Investment Cycle
The increase in funding, alongside repeat participation from global investors, reflects a market that is stabilising rather than expanding unpredictably. Larger, fewer deals and a focus on proven sectors are becoming more common.
While early-stage funding remains selective, the current trajectory suggests that investors are placing longer-term bets on African startups with clearer revenue paths and regional scale.
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