African startups and other ventures raised $3.3 billion in the first half of 2026, representing a 73 percent increase from the same period in 2025 and the strongest mid-year funding performance recorded on the continent in a decade.
The figure was disclosed by Briter in its latest Africa Venture Pulse – Current State of Investment 2026, which tracks venture funding activity across Africa between January and June 2026.
Despite the sharp increase in funding, the report shows that capital remains heavily concentrated among a small number of companies, sectors and established startup ecosystems.
The $3.3 billion was spread across 205 disclosed deals, while the median deal size increased by 235 percent year-on-year, rising from $500,000 in the first half of 2025 to $1.7 million in H1 2026.
Briter attributed the increase in median deal size to a growing number of large transactions during the period.
However, the rise in total funding has not translated into broader access to capital. The top 10 ventures accounted for 65 percent of total funding value in H1 2026, up from 48 percent during the same period in 2025.
This implies that while Africa’s venture market is recovering strongly in terms of capital deployed, a significant share of the money is flowing into a relatively small group of companies capable of attracting large rounds.
Briter said capital reached more than 40 sectors during the first six months of the year, but deal activity remained concentrated in a few core areas.
Fintech and agriculture led the number of deals, while health, education and cleantech and renewable energy also remained important areas of investment.
By funding value, four sectors which are health, fintech, mobility and cleantech which accounted for 83 percent of total investment.
The dominance of these sectors was largely driven by a series of large transactions, highlighting how individual megadeals can significantly influence Africa’s overall funding figures.
The concentration is also visible geographically. The continent’s four leading startup hubs accounted for 69 percent of all deals during the period, reinforcing the importance of established ecosystems in attracting venture capital.
Another notable finding is the growing role of companies incorporated outside Africa in the continent’s investment space.
According to Briter, entities primarily incorporated outside Africa accounted for 50 percent of the total funding value raised during H1 2026.
The trend raises questions about where the economic value of Africa-focused venture investment ultimately accrues, particularly as startups structure their businesses across multiple jurisdictions to access international capital.
Equity remained the dominant financing instrument, accounting for more than 58 percent of funding value and 37 percent of deal volume.
The report also highlighted the continuing gender gap in venture financing.
Women-founded and mixed-gender teams secured 22 percent of deals during the first half of 2026 but received only 1.9 percent of total funding value.
The disparity suggests that although female and mixed-gender founding teams are participating in Africa’s venture ecosystem, they continue to face significant challenges in accessing larger rounds of capital.
Accelerators and startup hubs accounted for 21 percent of deal participation despite representing only 8 percent of active funders, underscoring their continued role in connecting early-stage businesses with investors.
Briter’s findings point to a venture market that is recovering in aggregate but becoming more concentrated.
The $3.3 billion raised in six months nearly matched the total capital raised during the whole of 2025, making 2026’s funding recovery significant.
However, the concentration of funding among the largest ventures means that the headline growth does not necessarily reflect an equally strong recovery for startups across all stages.
For early-stage companies, particularly those outside the continent’s major innovation hubs, access to capital remains considerably more difficult.
The latest figures therefore suggest that Africa’s venture ecosystem is entering a new phase which is one characterised not simply by more capital, but by larger bets on fewer companies and greater investor selectivity.
For founders, investors and policymakers, the challenge will be to ensure that the surge in capital translates into a broader and more sustainable startup ecosystem rather than being concentrated among a small group of established ventures.
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