Q1 2026 Venture Capital in Africa Report

This series provides an exclusive look at the latest trends in African venture capital, offering insights into regional dynamics, sector-specific shifts, and the key areas driving investment across the continent during Q1 2026.

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Key Findings: 

• Fundraising Rebounded Above 2025 Levels: Q1 2026 final closed commitments exceeded full-year 2025 fundraising, reflecting the first US$100mn+ close since 2024 and shorter fundraising cycles.
• Deal Volume Fell and Value Concentrated: VC deal volume fell 21% YoY to 96 deals, marking the lowest Q1 total since 2020. Funding value rose 2.3x YoY to US$1.4bn, although a single megadeal accounted for 57% of the total.
• West Africa Led Deal Activity: West Africa led VC deal volume with 31% of transactions.

• Sector Leadership Shifted: Financials lost its longstanding lead to Industrials, which captured 21% of venture deal volume, while Health Care and Consumer Staples also gained share.
• Exit Activity Stabilised Above Pre-2022 Levels: Exit activity remained in line with the three-year Q1 average, with trade buyers accounting for 88% of exits.

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