Between January and June 2026, the African startup scene witnessed 137 deals, totaling approximately $1.5 billion in disclosed funding, as reported by Condia’s funding tracker. This data indicates a notable shift in the ecosystem, moving away from debt and back towards equity, particularly evident in the last two months of the period. Growth-stage companies continue to secure the largest funding rounds, while Nigeria lags behind the “Big Four” markets, recording more deals but significantly less funding.
The most striking trend in the Q2 2026 data is the resurgence of equity investments. Of the 70 deals tracked between April and June, 46 were purely equity-based, and four combined equity and debt, accounting for more than two-thirds of all deals during this period. In contrast, Q1 2026 was dominated by debt, with January and February seeing debt-driven funding accounting for over half of the total. However, by May and June, debt’s share had decreased to under 15%, as equity rounds, such as Paymentology’s $175M raise and Spiro’s two rounds of $215M and $55M, took center stage. This shift suggests that investors remain willing to support growing industry leaders.
The data reveals a significant change in investor preferences, with equity investments gaining traction in recent months. The dominance of debt in the early part of the year gave way to equity rounds, indicating a renewed focus on supporting high-growth companies. As the African startup ecosystem continues to evolve, it is likely that this trend will have a lasting impact on the industry. The numbers demonstrate that investors are still confident in the potential of African startups, and the shift towards equity investments is a positive sign for the sector’s future growth.
