Equity funding into African tech startups has hit $1.5 billion from January to September of 2026, according to data from Africa the Big Deal. This means that 69.5 per cent of the $2.16 billio
Equity funding into African tech startups has hit $1.5 billion from January to September of 2026, according to data from Africa the Big Deal. This means that 69.5 per cent of the $2.16 billion raised so far this year has come in the form of equity. This is crucial, as it shows investor confidence is returning to the ecosystem after a period of increased debt funding.
Indeed, the influx of equity funding already raised this year represents a four-year high, pointing to the best nine months for equity since 2022. The $1.5 billion raised in equity surpassed $1.2 billion in equity funding raised in 2025 by 25 per cent, the $1 billion raised in 2024 by 50 per cent, and the $1.4 billion raised in 2023 by 7.1 per cent.
Looking at it over the last 12 months, equity funding hit its highest level in more than three years, reaching $2.2 billion between October 2025 and September 2026. This is up from $1.8 billion recorded in the previous 12 months, indicating a 22.2 per cent increase. It, however, isn’t anywhere close to a period between 2021 and 2022, at the height of the funding heatwave, when ventures raised more than $5 billion in equity funding. Those days are in the distant past now.
Venture in Africa
As the equity share of funding rises, debt financing appears to be dropping, with $669 million raised as debt in the first nine months of 2026. This represents about 30 per cent of the total funding raised during the period. This is lower than the same period in 2025, when 45 per cent of the total funding raised came in the form of debt financing.
It is also less than the 33 per cent debt in the same period in 2024, and 37 per cent recorded in 2023.
The decline in debt funding can be traced to the overall decline in financing for energy startups. This is because most of the debt recorded in previous years has been attributed to heavy investments in energy startups.
In 2025, energy startup d.light raised $300 million in debt, while Sun King raised $156 million, both in the third quarter. Together, they raised $456 million, representing more debt than the $365 million combined debt raised by African startups in Q2 and Q3 2026. So far this year, energy startups have only raised $93 million in debt, down from $585 million raised in the first nine months of 2025.
d.light
So far, the largest debt deals this year include the Egyptian fintech ValU, which raised $64 million; Sistema.bio, with $53 million; e-mobility company Spiro and fintech NALA with $50 million each, and Odyssey with $47 million. These are smaller debt deals that have characterised funding this year.
2026 is shaping up to be a good year for venture funding into African tech startups, as ventures around the continent have raised $797 million in the third quarter of the year. This is not very far behind the $804 million raised in the same quarter in 2025, a small 0.9 per cent drop.
Since this article is equity-heavy, it is important to note that the third quarter was responsible for a large chunk of equity, with $580 million raised in the form of equity. This represents 72.8 per cent of the total quarterly raise. It also represents a 145.7 per cent increase from $236 million in equity funding raised in Q3 2025, and the best third quarter for equity since 2021.
Nigerian e-mobility company Moove accounted for the largest equity deal of the quarter, raising $250m Series C in August with a valuation of $2.1 billion, cementing its place among Africa’s tech unicorns. But the third-quarter equity funding was still impressive in that, even without Moove’s contribution, equity would still be up by 40 per cent year-on-year.
Other contributors are Jumia, which raised $50 million; Yellow Card, which raised $40 million; Paymob, which raised $35 million; Odyssey, with $27 million; and Moment, with $22 million.
With the third-quarter report, African startups have now raised $2.16 billion in the first nine months of 2026. This represents a 4 per cent drop from the $2.24 billion raised during the same period in 2025, which is impressive as 2025 is considered a defining year for venture funding on the continent. The 2026 total so far is 46 per cent more than the $1.5 billion raised between January and September 2024 and only $120 million short of the 2024 total.
Over the last 12 months, African startups have raised $3.1 billion. This is more than the $3 billion recorded in the previous 12 months, which tells the story of a stabilising funding ecosystem.
