African startups raised a combined $151 million in funding through deals of at least $100,000 in March, according to data discussed by The Big Deal co-founder Max Giacomelli, highlighting a market that is still attracting capital, but with a narrower base of companies and a growing reliance on debt.
March's totals were made up of $55 million in equity and $96 million in debt, meaning nearly two-thirds of the month's funding came from debt instruments. While this represents a meaningful rebound compared to the same month a year ago, it also highlights a structural shift in the structure of startup financing across the continent.
Speaking in a televised interview, Giacomelli said the total of about $150 million in March was below the average monthly funding level of the previous 12 months, which he said was about $250 million. Still, he said the figure was almost three times the amount raised in March 2025, reflecting the mixed signals currently shaping Africa's venture funding environment.
“It becomes more interesting when we look at the details,” Giacomelli said, pointing to the heavy concentration of loans in a small number of transactions and the sharp decline in the number of startups securing capital.
The biggest deal in March was a $53 million debt raise by Sistema.bio. This was followed by another debt-heavy transaction, a bond issuance of more than $40 million by MNT-Halan. Zeno rounded out the top three deals of the month with a $25 million Series A round, making it one of the most notable equity raises in the period.
According to Giacomelli, the Sistema.Bio and MNT-Halan transactions together accounted for about 95% of all loans raised in March, which shows how concentrated the funding environment has become. This concentration matters because it can increase the total dollar amount raised, even if a small group of startups has access to capital.
The clearest indication of that toughness, he said, was the number of ventures that raised at least $100,000 in March. Only 22 startups met that threshold, the lowest monthly number recorded since Africa: The Big Deal began tracking such deals in 2021.
The data could reinforce concerns that the funding ecosystem is becoming increasingly top-heavy, with later-stage companies and businesses able to secure loans to raise money, while young startups and companies at the lower end of the funding funnel are struggling to attract investors.
The broader picture for the first quarter shows a similar pattern. Giacomelli said that between January and March, African startups raised less than $600 million. On the surface, this marks an improvement from the roughly $470 million raised in the first quarter of 2025.
But the apparent improvement comes with an important caveat: The debt is now carrying a far heavier burden.
According to Giacomelli, in the first quarter of 2025, about 90% of the funding announced by African startups was equity. In the first quarter of 2026, this share fell to almost half, indicating a major turn towards debt financing. This suggests that investors are taking a more cautious approach, favoring structured capital and downside protection over traditional equity exposure.
The number of funded enterprises also weakened materially on a quarterly basis. Giacomelli said 83 startups raised at least $100,000 in the first quarter of 2026, down significantly from 130 in the same period a year earlier. In other words, total funding dollars increased year over year, but the breadth of market participation declined significantly.
For founders and ecosystem watchers, this divergence could prove crucial in the coming months. Higher dollar totals may give the impression of a recovery, but the shrinking pool of funded startups could signal tougher fundraising conditions for early-stage ventures and a weaker pipeline for future growth.
The interview also discussed exits, another closely watched indicator of market health. Giacomelli said exits have been limited, with about five recorded in the period under discussion. While this is not an insignificant one-month gain across the continent, he suggested the number is still too low to fully unlock the momentum of strong early-stage investing.
Exits are central to venture markets because they provide liquidity, validate the business model and give investors confidence that capital can eventually be returned. Without a steady flow of acquisitions or public listings, angel investors and venture firms may be less willing to support risky startups in the early stages.
Giacomelli describes the current dynamic as one where exits are important not only because they allow investors to cash out, but also because they can serve strategic corporate objectives. He highlighted the acquisition of Order by MoneyPoint as a transaction that made recent headlines, saying it strengthened MoneyPoint's merchant offering and showed that M&A can be about liquidity for investors as well as building stronger operating businesses.
Overall, the March and first quarter data point to an African startup landscape that is still active but increasingly selective. Capital is available, especially for more mature companies and businesses able to raise debt, but overall fewer startups are being funded.
This trend will likely keep investors and founders focused on second quarter performance to determine whether the market is stabilizing or whether the decline in startup numbers signals a deeper structural funding gap at the bottom of the funnel. For now, data shows that while Africa's startup ecosystem is showing resilience in headline funding totals, the underlying market remains uneven and concentrated.