Grace Ashiru
African startups are securing larger funding rounds, but most still fail to reach Series A, according to a new State of Startup Funding in Africa report.
The report found that fewer than 10% of African startups that raise seed funding go on to secure a Series A round. Condia, which hosted a launch webinar for the report, said it tracked 105 startups from the 2022 seed cohort and found that only 10 had raised the next round.
The findings point to a tougher funding environment for early-stage companies across the continent. While the startups that survive are attracting bigger cheques, many others are struggling to prove they can grow fast enough, generate revenue, and meet investor expectations.
The time it takes to move from seed to Series A has also become longer. In 2022, startups that reached Series A typically did so about 18 months after seed funding. By 2025, that timeline had stretched to 29 months, according to Condia’s report launch details.
At the same time, the size of successful Series A rounds has increased. Condia said the average Series A ticket size has risen by 80% to about $17 million, showing that investors are still willing to back strong companies, but are doing so more selectively.
The report also warns that the pipeline of future Series A companies may be weakening. Seed-stage deals have fallen by 60% over the last three years, which could leave fewer startups ready for later-stage funding in the years ahead.
For founders, the message is clear: raising seed capital is no longer enough. Startups now need stronger financial discipline, clearer growth targets, and a faster path to sustainable revenue if they want to attract follow-on funding.
The broader African startup market has not collapsed, but it has changed. Investors are no longer spreading capital widely across early-stage bets. Instead, they are concentrating bigger amounts on fewer companies that show stronger traction and a better chance of long-term survival.
The result is a more demanding funding landscape: bigger opportunities for the strongest startups, but a much harder road for the rest.
