DEG, Launch Africa and Co-Creation Hub (CcHUB) have emerged among the most active investors in Africa’s startup ecosystem, even as the number of investors and startups securing funding continues to decline in 2026.
Data from Africa: The Big Deal shows that DEG participated in more than 25 funding rounds between January and September 2026, placing it at the top of the list. Launch Africa followed with at least 21 rounds, while CcHUB and Mastercard each participated in more than 12. Digital Africa recorded approximately 11 rounds.
The figures highlight the continued role of a relatively small group of active investors in supporting African businesses as the funding environment becomes more selective.
African startup investors decline by 18%
About 334 individual investors participated in African startup funding rounds worth at least $100,000 during the first nine months of 2026. This represents an 18.1% decline from the 408 investors recorded during the same period in 2025.
The number of startups announcing funding rounds also fell. Some 311 ventures secured funding between January and September, compared with 381 a year earlier, an 18.3% drop.
The decline suggests that fewer businesses are accessing external capital, creating a more competitive environment for founders seeking investment to launch, grow or expand their operations.
Early-stage startups face greater pressure
The contraction is particularly pronounced among early-stage companies.
Startups raising between $100,000 and $1 million fell from 220 in the first nine months of 2025 to 171 in the same period in 2026, a decline of 22.2%.
Meanwhile, the number of startups raising more than $1 million dropped from 161 to 140, representing a decline of more than 13%.
These figures suggest that securing an initial investment cheque is becoming increasingly difficult for emerging businesses. For founders, that can mean fewer opportunities to validate their business models, build products, attract customers and reach the milestones needed to secure larger funding rounds.
Max Cuvellier of Africa: The Big Deal noted that raising a first cheque is becoming harder, while companies that reach larger funding rounds may face comparatively less difficulty.
Repeat investors remain important
Despite the overall decline, the data points to a notable pattern: a growing share of investors are participating in multiple funding rounds.
Of the 334 investors recorded in 2026, 91, or 27.2%, participated in more than one round. That compares with 23.1% in 2024 and is close to the repeat-investor shares recorded in 2023 and 2021.
This suggests that although fewer investors are active in the market, a portion of those who remain are continuing to deploy capital across multiple deals.
For startups, repeat investors can provide more than funding. They may offer follow-on capital, industry connections and strategic support as businesses navigate growth. However, repeat participation alone does not guarantee that funding is reaching the earliest-stage ventures that need it most.
What this means for Africa’s startup ecosystem
DEG, Launch Africa and CcHUB’s activity highlights the importance of investors that continue to support African ventures in a tighter funding environment.
DEG, a German development finance institution and subsidiary of KfW Group, finances private-sector businesses and investment funds in emerging and developing markets. Launch Africa backs startups across the continent, while CcHUB supports entrepreneurs through its innovation and startup ecosystem.
The broader challenge is ensuring that capital remains accessible across different stages of business development, particularly for early-stage founders who may not yet have the traction required to attract larger investors.
As 2026 progresses, the key question for Africa’s startup market is not only how much funding is raised, but also how widely that capital is distributed and whether promising young businesses can secure the first investment they need to grow.
