African startups secured $1.44 billion in the first half of 2026, compared to $1.42 billion in the same period of 2025. Equity accounted for $818 million, while debt reached $614 million, representing 42.6% of the total raised. The number of disclosed deals dropped significantly from 252 to 146.
The trend toward debt financing is consistent with 2025 data, where debt reached $1.6 billion, marking a 63% increase. In that year, debt comprised 41% of the total $4.1 billion raised. Capital is primarily flowing into companies with physical assets, such as electric motorbikes and solar systems, which provide collateral for lenders.
GoCab, a London-founded firm, illustrates this model with a $45 million raise in February 2026, consisting of $15 million in equity and $30 million in debt. This strategy allows asset-heavy startups to secure funding without diluting ownership, whereas software-focused companies face increasing difficulty in accessing equity capital.
Data from Liners indicates that the ratio of seed rounds to Series A rounds is approximately six to one, with 1,669 seed rounds tracked against 270 Series A rounds as of September 2026. The median funding round recorded in 2026 currently stands at $3 million, highlighting a narrowing path for startups seeking growth capital.
