African venture capital is backing fewer founders than ever

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.

The 30 most-funded startups absorbed 84% of all disclosed capital raised during the first half of the year, according to data from TechCabal Insights. The remainder was shared among more than 100 other ventures.

Stability is the new order

According to TechCabal Insights, startups secured $1.44 billion across 146 disclosed transactions during the first half of the year. Yet the number of deals fell 42% year on year, suggesting investors are writing fewer but significantly larger cheques.

Mid-sized rounds between $10 million and $99 million accounted for 66% of total funding, while early-stage rounds below $500,000 represented just 19% of all deals,…