African Tech Startup Funding Squeeze Hits Early‑Stage and Women‑Led Ventures

A new report shows that African technology startups are adding more women to founding teams, with female co‑founders rising to 19.2% of firms and female CEOs to 12.1% in 2026. Despite these gains, the share of venture capital flowing to women‑led companies has fallen sharply. In 2024 only 18.5% of funded startups had a female founder, down from 26.3% in 2023, and the figure slipped further to 16.9% in 2025.

At the same time, early‑stage African startups are confronting a broader funding reset. In the first half of the year they raised about $1.4 billion, roughly equal to the same period a year earlier, but the number of deals dropped sharply and average check sizes rose. Investors are increasingly favouring later‑stage companies with proven revenue and clear exit paths, leaving seed and Series A ventures with fewer financing options. Industry leaders such as Ibrahim Sagna of Silverbacks Holdings and partners at Norrsken22 note that “exit discipline” now drives investment decisions, prompting some firms to consider secondary purchases of stakes in more mature startups.