Africa’s startup funding activity slowed sharply in July 2026, with 47 startups raising a combined $102.2 million across disclosed deals. The funding situation remained heavily concentrated, as the top 10 funded startups attracted $88.85 million, accounting for 86.94% of all capital raised during the month.
Nearly nine out of every ten dollars invested in African startups during the month went to just ten companies. Three startups involved in merger and acquisition transactions did not disclose the value of their deals during the period, as the deal values were not disclosed and do not represent fresh capital inflows into startups.
Compared with June 2026, when African startups raised $515.6 million across 52 deals, July funding plunged by 80.2%. The dominance of the largest deals also moderated, with the top 10 accounting for 86.6464% of total funding compared with 94.4% in June.
The slowdown was even more pronounced on a year-on-year basis. In July 2025, African startups secured $554.3 million across 71 deals, meaning funding declined by 81.6% in July 2026.
The top 10 African startups by funding in July 2026 included Mylerz (Egypt) – $2 million, Ora Technologies (Morocco) – $2 million, and Fincart (Egypt) – $2.8 million. Wamly (South Africa) raised $3.05 million.
Southern Africa attracted the largest share of disclosed funding during the month, raising $49.5 million, representing 48.43% of total funding across nine deals. Eastern Africa followed with $37.3 million, accounting for 36.50% of total funding across 18 deals.
Related: Teachers unpaid for years struggle to cope
At the country level, South Africa emerged as the leading destination for startup funding, attracting $38.8 million, equivalent to 37.96% of total funding across eight deals. Kenya followed closely with $36.8 million, accounting for 36.01% across 13 deals.
Investors are becoming more cautious and prioritizing larger, de-risked businesses and debt-based financing over aggressive venture capital deployment, which is similar to what happened in other regions during times of economic uncertainty.
Startups may need to adapt to this new environment and explore alternative funding options, as the decline highlights a significantly more cautious investment environment.
It is a challenging time for startups.
They must find ways to secure funding in a difficult market, which may involve exploring alternative options such as pollution control initiatives or partnering with organizations that support entrepreneurs.
The situation is complex, and there are many factors at play, including the state of the economy and the availability of funding.