African venture capital is backing fewer founders than ever
African startups are hitting a funding wall. While big players still get cash, early-stage founders find VCs are playing it safer, backing fewer newcomers than before.
This is Follow the Money , our weekly series that unpacks the earnings, business, and scaling strategies of African fintechs, financial institutions, companies, and governments. A new edition drops every Monday. Africa’s startup ecosystem raised roughly the same amount of venture capital in the first half of 2026 as it did a year earlier. Startups across the continent raised about $1.4 billion in the first six months of the year, broadly matching H1 2025 despite a global venture capital market that remains cautious, according to Africa: The Big Deal, a monthly funding tracker . But a closer look at where the money went tells a different story. The question is no longer whether capital is flowing into African startups, but where it is going. Rather than being spread across hundreds of young companies, venture capital is increasingly concentrating in a small group of mature businesses with proven business models and established revenues. The startups raising the largest rounds are attracting more money than ever before, while founders seeking their first institutional backing are finding fewer investors willing to take the risk.
