African Startups Urged to Set Realistic Funding Targets

Abdulwaheed Yusuf, Co-founder and COO of the Nigerian regtech startup Sidebrief, advised African startups to adopt more realistic fundraising targets during a panel discussion at GITEX Nigeria 2026 in Lagos. He warned that announcing a $1 million pre-seed fundraising goal while having only secured an initial $20,000 commitment could deter additional investors.

Yusuf emphasized that founders should prioritize obtaining their first investor commitment, as this can facilitate subsequent fundraising efforts. He noted that the current funding environment for African startups has become challenging, with a 27% year-on-year decline in capital raised in the first seven months of 2026, totaling $1.46 billion compared to $2 billion in 2025.

In Nigeria, startups raised $78.6 million in the first quarter of 2026, a 28% decrease from the previous year, with the top 10 startups accounting for nearly all capital raised. Fintech remained the leading sector, attracting $98.5 million across 21 deals in the first half of 2026.