Africa’s startup industry began 2026 at a slower pace. With total startup funding dropping significantly as investments remained concentrated among a few dominant players.
In January 2026, 28 startups raised $177.1 million. A sharp decline from the $349.1 million secured across 75 deals in December 2025. This figure is also lower than the $292.65 million raised through 54 deals in January 2025.
Despite the slowdown in both deal volume and total funding. The top 10 startups accounted for $163.8 million, representing 92.49% of all capital raised during the month.
According to data from research, investors continue to favor startups. That have demonstrated clear progress and strong leadership in their industries.
Notably, Mono was excluded from this startup funding list due to its all-stock acquisition by Flutterwave in a deal valued at $25–$40 million. Since this transaction represents an M&A exit rather than a funding round, it was not included in the data.
Key Insights:
- Funding Decline: January’s total funding dropped by 49.27%, from $349.1 million in December to $177.1 million.
- Fewer Deals: Deal activity fell by 62.67%, with only 28 transactions compared to 75 in December.
- Capital Concentration: The top 10 startups raised $163.8 million, accounting for 92.49% of total funding. In December, the top 10 raised $321.5 million, also representing over 92% of total funding.
These figures highlight a noticeable contraction in overall funding activity compared to the previous month. Though the concentration of capital among leading startups remains consistent.
