African startups could be putting off potential investors by setting ambitious $1 million pre-seed fundraising targetsbefore securing meaningful investor commitments, according to Sidebrief Co-founder and COO, Abdulwaheed Yusuf. Speaking at GITEX Nigeria 2026 in Lagos, Yusuf urged early-stage founders to focus less on announcing big funding goals and more on securing the first cheque that can give their fundraising efforts credibility and momentum.
Yusuf said founders sometimes make the mistake of announcing a $1 million pre-seed round when their first investor commitment is only around $20,000. According to him, the gap between the headline fundraising target and the amount already committed could make potential investors question whether the startup can realistically close the round. “You say you’re raising one $1 million as a pre-seed. But your first cheque is probably $20k,” he said during a panel discussion titled The First Cheque: How African founders can unlock early-stage capital.
The Sidebrief executive argued that the first investor cheque can be one of the most important milestones for a startup raising its first round. Once one investor has committed capital, other prospective investors have evidence that someone is willing to back the business. Yusuf therefore encouraged founders to build fundraising momentum gradually instead of allowing a large funding target to become a barrier during investor conversations.
His warning comes as African startup funding faces a tougher environment in 2026. Startups across the continent raised $1.46 billion between January and July, representing a 27% decline from the $2 billion recorded during the same period in 2025. The slowdown was particularly sharp in July, when African startups raised $102 million across 44 deals, significantly below the $258 million monthly average recorded over the preceding 12 months.
Nigeria has also experienced weaker startup funding activity, with startups raising $78.6 million across 15 deals in the first quarter of 2026, down 28% year-on-year. Despite the challenging environment, fintech remained the strongest funding sector in the first half of the year, attracting $98.5 million across 21 deals. For early-stage founders, Yusuf’s message is clear: in a selective investment market, securing the first cheque and demonstrating real investor interest may matter more than leading with a million-dollar fundraising headline.
source: Nairametrics
