African startups experienced a notable rebound in funding activity in February, following a relatively slow start to the year in January.
A report by Africa: The Big Deal, revealed that African startups raised a total of $272 million across 40 deals valued at $100,000 and above. The funding included a mix of equity, debt, and grants, excluding exits.
The February total marked a significant improvement from January’s $174 million and came in slightly above the previous 12-month monthly average of $254 million. The number of startups announcing funding also increased compared to January, though it remained marginally below the 12-month monthly average of 46 deals. Recall that only 26 start-ups announced at least $100k in funding in January.
Overall, the data indicates that after a relatively muted start to the year, February restored funding activity to levels commonly seen throughout 2025. In terms of deal structure, equity financing accounted for 54% of the capital raised, while debt represented 45%, highlighting the continued importance of alternative financing structures in the African startup ecosystem.
As has often been the case in the region, a small number of large deals drove the bulk of the month’s funding. The largest came from Spiro in Benin, which announced $57 million in debt across two transactions. Close behind was Egypt’s Breadfast, which secured $50 million in pre-Series C funding.
Meanwhile, GoCab in Côte d’Ivoire raised $45 million through a combination of debt and equity, further boosting the month’s total. Several other companies also announced sizable rounds exceeding $20 million.
Terra Industries in Nigeria added $22 million to a previously announced round, while Enko Education in South Africa secured $22 million in debt financing. Additionally, South African fintech Lula raised $21 million from Dutch development finance institution FMO.
Together, these six companies accounted for around 80% of all funding announced in February, underscoring the continued concentration of capital within a relatively small group of ventures.
Geographically, Egypt led the continent with $64 million raised, followed closely by Benin with $57 million, Côte d’Ivoire with $45 million, and South Africa with $44 million. From a regional perspective, West Africa dominated funding activity, attracting 53% of total capital during the month. Northern Africa followed with 24%, while Southern Africa secured 21%.
One notable development was the sharp drop in East Africa’s share of funding. The region, which led the continent in 2025 with 34% of total startup funding, ranked fourth in February with just 3% of the total. Even when looking at year-to-date figures for 2026, East Africa’s share stands at only 4%, a trend that observers say will be important to monitor in the coming months.
With February’s results included, African startups have now raised more than $446 million in the first two months of 2026, slightly ahead of the $417 million recorded during the same period in 2025.
Outlook
While February’s recovery signals renewed momentum for Africa’s startup funding landscape, the data suggests that the ecosystem remains heavily reliant on a small number of large deals. Sustained growth will likely depend on a broader distribution of funding across early- and growth-stage startups.
Looking ahead, investors and ecosystem watchers will be paying close attention to whether East Africa regains its momentum, whether West Africa can maintain its dominant share, and whether the continent can continue matching or surpassing the funding pace seen in 2025.
If larger rounds continue and more startups secure capital in the coming months, 2026 could still emerge as another resilient year for African venture funding despite global investment uncertainties.
