Nigeria’s startup ecosystem is thriving, attracting billions in investments and creating unicorns like Flutterwave and PiggyVest. With Lagos leading as a top African tech hub, here are 10 key investors shaping the scene:
- Acuity Venture Partners: Early-stage investor focusing on data-driven decisions and funding $125K–$725K per startup.
- Co-Creation Hub (CcHub): Supports social tech ventures with funds and programs like Make-IT Accelerator.
- EchoVC Partners: Invests in underrepresented sectors like climate tech and health, with $41M deployed.
- Verod Kepple Africa Ventures (VKAV): Backs growth-stage startups with $1M–$3M investments.
- Oui Capital: Focuses on diversity, investing $250K–$500K in early-stage startups.
- Knight Ventures: Runs a 3-month accelerator for tech-driven startups.
- Microtraction: Offers $100K for 7% equity, with follow-on funding up to $350K.
- Ventures Platform: Targets startups solving unmet needs and infrastructure gaps.
- TLcom Capital: Invests $500K–$10M in scalable tech startups.
- Ingressive Capital: Provides up to $500K for early-stage startups, focusing on fintech and marketplaces.
Quick Comparison
| Investor | Funding Range | Focus Areas | Notable Investments |
|---|---|---|---|
| Acuity Venture Partners | $125K–$725K | Early-stage, data-driven | Lemonade Finance, Mono |
| Co-Creation Hub (CcHub) | $2.4M fund | Social tech, public services | 95+ ventures supported |
| EchoVC Partners | Up to $200K | Climate tech, health | Printivo, Eco Pilot Fund |
| VKAV | $1M–$3M | Growth-stage, infrastructure | Moove, Zone |
| Oui Capital | $250K–$500K | Diversity, early-stage | Moniepoint, Akiba Digital |
| Knight Ventures | Pre-seed/Accelerator | Fintech, scalable startups | AZAPAY, KlevaHR |
| Microtraction | $100K + $350K follow-on | Early-stage, tech founders | Intron Health, Clafiya |
| Ventures Platform | Varies | Unmet needs, infrastructure | Paystack, Piggyvest |
| TLcom Capital | $500K–$10M | Scalable tech | Andela, Kobo360 |
| Ingressive Capital | Up to $500K | Fintech, marketplaces | Paystack, Healthtracka |
These investors not only fund startups but also provide mentorship, networks, and strategic support, fueling Nigeria’s tech innovation. Ready to explore opportunities? Let’s dive deeper.
Iyinoluwa Aboyeji Reveals What it Takes to Build a Successful …
1. Acuity Venture Partners
Acuity Venture Partners has established itself as a key player in Nigeria’s early-stage tech investment scene, using a data-focused approach. Founded in 2018 by Lexi Novitske after acquiring the Singularity Investments portfolio, the firm has quickly gained recognition in Nigeria’s startup ecosystem.
The firm’s investment approach centers on supporting entrepreneurs addressing Africa’s pressing challenges. They typically invest between $125,000 and $725,000 in early-stage ventures.
| Notable Investment | Round | Date | Amount |
|---|---|---|---|
| Lemonade Finance | Pre-seed | November 1, 2021 | $725,000 |
| VendEase | Seed | March 23, 2021 | $125,000 |
In 2020, Acuity made six investments in Nigerian startups, including OnePipe, Mono, Lemonade, Send, Indicina, and Spektra. These moves highlight their commitment to providing both funding and strategic support.
“Accurate data insight is at the heart of our operation. Acuity doesn’t make investments based on our gut, and we don’t believe exceptional company growth comes from hard work alone. Through our expertise in strategy, governance, talent management, and analytics, we empower entrepreneurs who are solving Africa’s most important problems. We believe in smart decisions driven by data.” – Lexi Novitske
This quote reflects Acuity’s comprehensive approach. Beyond just funding, they provide guidance in areas like governance, talent management, and analytics, ensuring their portfolio companies are well-equipped for growth.
With over $725,000 invested in African startups, Acuity isn’t just fueling growth – they’re offering the tools and expertise needed to succeed. Their strategic and analytical support makes them a valuable partner for early-stage startups looking for more than just capital.
2. Co-Creation Hub (CcHub)
Founded in 2010 in Lagos’s Yaba district, Co-Creation Hub (CcHub) plays a key role in Nigeria’s tech ecosystem. It combines funding capabilities with extensive support for startups, making it a central hub for tech-driven innovation in the region.
In December 2015, CcHub launched its Growth Capital fund in collaboration with the Bank of Industry (BoI), Venture Garden Group (VGG), and Omidyar Network (ON). This ₦1 billion fund (about $2.4 million) focuses on backing social tech ventures that develop technology to improve public services and better connect them with citizens.
| Investment Focus | Support Services |
|---|---|
| Social Tech Ventures | Pre-incubation Program |
| Digital Infrastructure | Research Unit |
| Public Services | Make-IT Accelerator |
| Early-stage Startups | Innovation Consulting |
Since its inception, CcHub has supported over 95 early-stage ventures, contributing to the creation of more than 450 jobs. Its work spans multiple sectors, including public health, education, digital security, governance, and finance.
“Specifically, we are looking at products/services/technology tools that would make public services smarter and at the same time connect more citizens of Nigeria to those services.” – Tunji Eleso, Managing Partner, Growth Capital by CcHub
Through its CcHub Syndicate, the hub offers angel and early-stage investors the chance to co-invest in fast-growing tech startups across Sub-Saharan Africa. CcHub also operates in six African cities: Lagos, Abuja, Ijebu-Ode, Kigali, Nairobi, and Windhoek.
The hub’s ecosystem approach brings together a diverse range of stakeholders, including end-users, experts, government bodies, and academic institutions. This collaborative strategy extends beyond funding, adding meaningful support to its initiatives. Programs like the Make-IT Accelerator provide entrepreneurs with tailored training to help scale their innovations and drive growth.
3. EchoVC Partners
EchoVC Partners is an early-stage venture capital firm focused on technology, with over $41 million invested and more than $21 million returned within Nigeria’s startup ecosystem. The firm prioritizes supporting founders and ventures in markets that often lack sufficient representation.
| Investment Focus Areas | Investment Parameters |
|---|---|
| Smart Planet | Up to $200,000 per climate tech startup |
| Health & Human Services | Pre-seed to early-stage funding |
| Emerging Fintech | Hands-on operational support |
| Commerce | Broad sector focus |
| Media & Entertainment | Prioritizes underrepresented founders |
| Sustainable Mobility | Often takes a lead investor role |
One standout example from EchoVC’s portfolio is Printivo. In October 2015, the online printing company received a six-figure seed investment. Within a year, Printivo was serving over 3,000 customers and processing about 1,000 orders monthly. The company also partnered with global brands like Google, Uber, Samsung, and DHL, achieving 50% quarterly revenue growth during its early stages.
“The lightning speed at which Printivo has changed Nigerian SMEs’ print purchasing habits and built a customer base that runs into the thousands is impressive, and was a key driver in our decision to invest.” – Wale Ayeni, Investment Director at EchoVC Pan-Africa Fund
EchoVC also launched the $2.5 million Eco Pilot Fund I, focusing on early-stage startups in energy, agri-tech, and climate tech. The fund plans to invest in 8 to 10 companies across Africa, with a particular interest in electric two- and three-wheelers in Nigeria and Kenya.
The firm’s approach includes thorough due diligence and active involvement, offering both operational and strategic guidance to help startups grow. This hands-on strategy strengthens its position as a key supporter of diverse startups.
“Once you get out of the fintech world you really struggle [to raise funds]… like desert work right there. That was interesting to us because we realised that if you fund founders who are working in those spaces, they are more likely than not to be mission-driven.” – Eghosa Omoigui, Founder and Managing Partner of EchoVC
With a portfolio of 36 companies employing over 2,000 people, EchoVC continues to influence Nigeria’s startup landscape. By focusing on sectors that often face challenges in securing funding, the firm is helping to build a more inclusive and resilient entrepreneurial ecosystem. This approach reflects broader investment trends shaping Nigeria’s vibrant startup scene.
4. Verod Kepple Africa Ventures
Verod Kepple Africa Ventures (VKAV) plays a big role in Nigeria’s venture capital scene, managing a $60 million fund aimed at tech-driven, growth-stage companies. The firm typically invests between $1 million and $3 million in startups. Here’s a closer look at their investment focus and strategies:
| Investment Focus | Target Areas |
|---|---|
| Digital Infrastructure | Payment systems, blockchain solutions |
| Business Process Innovation | Vertical ERP solutions, treasury management |
| Consumer Trends | Mobility |
| Growth Stage | Tech-enabled companies addressing African challenges |
| Investment Range | $1M – $3M per investment |
So far, VKAV has invested $17.5 million in 12 Nigerian startups. Their portfolio includes companies like Moove, which offers embedded asset financing for mobility entrepreneurs, and Zone, a blockchain-based regulated payment switching network.
VKAV doesn’t just provide funding – it connects startups with a global network of entrepreneurs, investors, and corporate partners:
“We connect you to a huge group of like-minded entrepreneurs, larger scale investors, and strategic corporate partners on the continent, and from across the globe.” – Kepple Africa Ventures
Another example is Releaf, an agribusiness platform tackling challenges in Nigeria’s agriculture sector while benefiting from VKAV’s network and expertise.
VKAV’s Key Investment Areas
VKAV focuses on three main areas:
- Inefficiency Solvers
Companies like Ceviant, a portfolio firm specializing in integrated treasury management, help businesses streamline their financial operations. - Homegrown Innovation
Shuttlers, a shared mobility platform, is transforming daily commutes in Nigeria, showcasing VKAV’s support for local solutions. - Infrastructure
Autochek, which optimizes the used car value chain, highlights VKAV’s commitment to advancing digital infrastructure.
With $364 million in assets under management across its various funds, VKAV is shaping Nigeria’s startup ecosystem through strategic investments and support. The firm also drives growth through cross-border expansion and mergers and acquisitions.
5. Oui Capital
Oui Capital is a leading early-stage venture capital firm based in Nigeria, complementing the strategies of other prominent investors. Its portfolio companies collectively boast a market value exceeding $1 billion. Oui Capital typically invests between $250,000 and $500,000 for equity stakes ranging from 5% to 10%, addressing the funding gap for early-stage startups.
| Investment Criteria | Details |
|---|---|
| Investment Range | $250,000 – $500,000 |
| Equity Target | 5–10% ownership |
| Selection Rate | 2% of applications |
| Focus Sectors | Fintech, Digital Commerce, Enterprise Software, Human Capital |
| Geographic Scope | Nigeria, Kenya, Mauritius, Zimbabwe, South Africa |
One standout example is a $150,000 investment in Moniepoint, which yielded $8 million after the company achieved unicorn status – a 53x return.
Investment Focus and Impact
Oui Capital prioritizes diversity in tech entrepreneurship. In 2020, 66% of its investments went to female-led tech companies, with every investment involving at least one female co-founder. Building on its success, the firm’s second fund reached a first close of $30 million in August 2022, following its initial Mentors Fund I, which closed at $4.7 million in December 2019.
“At Oui Capital, we set out to change that. We don’t just invest capital; we invest in people, rolling up our sleeves to help bold, visionary founders build companies that reshape industries. The opportunity in diversity is real, and we’re proving that every day.” – Olu Oyinsan, Managing Partner at Oui Capital
This hands-on approach extends to providing broader support for its portfolio companies.
Additional Support
Oui Capital doesn’t just provide funding – it offers a range of support through its Mentor’s Pool program. This includes:
- Strategic Guidance: Helping companies achieve product-market fit and gain traction
- Network Access: Connecting startups with potential investors and partners
- Talent Acquisition: Assisting with key hires and team-building efforts
For instance, Akiba Digital raised over $1.1 million in pre-seed funding under Oui Capital’s leadership, while Twende Mobility secured $150,000 to expand in East Africa.
“When we were designing the strategy for our fund, we spoke to almost 100 founders around the continent on what the challenges really are at the seed stage. Of course, access to early-stage capital that understood the market was number one. The other thing we discovered was that the teams desperately needed advisory talent and mentors that they could hardly afford yet. This is why we put together the Mentor’s Pool for our portfolio.” – Olu Oyinsan
“Oui Capital’s recent return of nearly the entirety of its 2019 vintage fund is a remarkable achievement. It’s a validation of early-stage investing in Africa, but its impact extends far beyond the continent. As global capital markets increasingly look toward emerging ecosystems, this milestone validates the broader investment thesis of deploying capital in emerging and frontier markets.” – Seth Levine
6. Knight Ventures
Launched in 2021, Knight Ventures plays a major role as a digital accelerator and investor for early-stage, tech-enabled startups in Nigeria. Building on the energy of Nigeria’s growing startup scene, Knight Ventures provides both funding and expert mentorship.
Investment Strategy and Support
Knight Ventures runs a three-month program designed to prepare startups for the market and attract investors. It focuses on pre-seed and accelerator-stage companies with scalable, tech-driven models and teams that prioritize gender balance. Here’s a quick breakdown of the program’s key criteria:
| Focus Area | Details |
|---|---|
| Stage | Pre-seed and Accelerator |
| Sectors | Fintech, Financial Services, Tech-driven Solutions |
| Program Duration | 3 months |
| Key Requirements | Tech-driven model, Growth potential, Scalability |
| Additional Focus | Gender-balanced teams |
In addition to funding, Knight Ventures takes a unique approach through its Enterprise Support Organization (ESO) model. It is among the first 20 ESOs selected in Nigeria.
Portfolio Success Stories
Knight Ventures has supported a range of startups, including AZAPAY (fintech), KlevaHR (HR tech), AfriHealth Ltd (healthtech), and Grocircular Agro Services (agritech).
One standout achievement is the collaboration between alumni Tribease and Zencey, which is making healthcare more accessible in Côte d’Ivoire and other regions.
“Accelerating the Future.” – Knight Ventures
Ecosystem Development
Knight Ventures also plays a vital role in strengthening Nigeria’s startup ecosystem. It has built a strong mentorship network with experts like Kolapo Ogungbile, Sydney Lartigue Fameni, and Aisha O. Tofa. The firm partners with organizations such as the Lagos State Employment Trust Fund (LSETF) and GIZ Nigeria & ECOWAS to further its impact.
Post-acceleration support is another key focus. For instance, alumni company BeGenio Tech combines education and sports by creating an e-sports-like experience for students learning math. This highlights Knight Ventures’ dedication to fostering businesses with transformative ideas.
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7. Microtraction
Microtraction is an early-stage venture capital firm playing a key role in Nigeria’s startup ecosystem. With its second fund closing at $15 million, the firm has made strides in backing African entrepreneurs.
Investment Approach
Microtraction invests $100,000 for 7% equity in pre-seed stage companies. Beyond the initial funding, it offers up to $350,000 in follow-on investments and provides guidance to help startups secure seed funding within 12–18 months.
Here’s a snapshot of their approach:
| Investment Aspect | Details |
|---|---|
| Initial Investment | $100,000 for 7% equity |
| Follow-up Potential | Up to $350,000 in later funding rounds |
| Seed Round Timeline | Within 12–18 months |
| Portfolio Success Rate | 82% of companies secure follow-on funding |
| Total Portfolio Value | Over $750 million |
Portfolio Performance
By 2023, Microtraction had invested in 67 companies spanning diverse sectors. These startups collectively raised over $100 million in follow-on funding. Recent investments include PBR Life Sciences ($1 million, December 2024), Juicyway ($3 million, December 2024), and Intron Health ($1.6 million, July 2024). These numbers highlight how Microtraction’s support helps startups scale quickly and effectively.
Support Framework
Microtraction sets itself apart with a founder-first approach. As Partner Dayo Koleowo puts it:
“We’re trying to provide the same value as YC but with a better understanding of the African market, which can help a founder raise better and build more sustainable businesses.”
The firm’s support extends beyond funding. Startups gain access to a network of experienced founders and investors, strategic scaling advice, introductions to potential follow-on investors, and tailored mentorship programs. For instance, after receiving investment, Allpro expanded to serve 30 schools, processed $1.4 million in fee payments, and reached over 12,000 students.
Investment Philosophy
Microtraction’s philosophy is rooted in building long-term partnerships with founders.
“’Founder Love’ is our North Star Metric. By this, we mean we look for all ways possible to show we are committed to the founders’ journeys and we are ready to stick with you through the ups and downs.”
The firm prioritizes technical founders developing scalable tech businesses for billion-dollar markets, especially those solving critical challenges in Africa.
8. Ventures Platform
Ventures Platform has become a major player in Nigeria’s startup scene, connecting innovative ideas with the funding they need to grow. The firm has backed over 75 startups and supported more than 140 founders. Its success stems from a targeted investment approach that focuses on addressing key challenges in the market.
Investment Strategy
Ventures Platform zeroes in on startups that tackle three main challenges:
- Providing solutions for unmet needs
- Addressing infrastructure gaps
- Making prosperity accessible to more people
This strategy has paid off, with its portfolio companies collectively raising over $1 billion in follow-on funding. These startups work to break down barriers and make services more affordable across Africa.
Notable Portfolio Companies
Here are some standout companies in Ventures Platform’s portfolio:
| Company | Sector | Contribution |
|---|---|---|
| Paystack | Fintech | A top payment processing platform |
| Piggyvest | Digital Banking | A leader in digital savings and investments |
| Remedial Health | Healthcare | Improving healthcare delivery |
| MDaaS | Healthcare Tech | Expanding access to medical diagnostics |
| Printivo | Digital Printing | Modernizing printing services |
Founder Support Framework
“Ventures Platform exemplifies investor support that goes far beyond funding. Whether it’s VP’s efficient investment process, connecting us to other investors and potential customers, and providing tailored support – all their touchpoints are intentional and truly value-add.”
– Dalumuzi H. Mhlanga, Founder at Notto Africa
Ventures Platform offers more than just funding. Their support includes:
- Guidance on strategic business development
- Access to an extensive investor network
- Mentorship programs for founders
- The Series V newsletter, which shares industry insights
- Custom resources to help startups scale effectively
Another founder highlighted their impact:
“Ventures Platform has been an invaluable partner in our journey. The team has provided unwavering support, both financially and strategically. Their introductions and connections in the fundraising world have been a game-changer for us, making the fundraising process more successful.”
– Oluwasoga Oni, Founder at MDaaS
Investment Philosophy
“One day, I will tell the story of the level of support some of us founders have received from Kola and his fund beyond money. Until that day, if you are building the future, this is a fund you should have on your cap table.”
– Oluyomi Ojo, Founder at Printivo
TLcom Capital operates from Lagos, Nairobi, and London, managing around $300 million in total commitments.
Investment Focus
TLcom Capital invests in tech startups across various industries, with funding amounts ranging from $500,000 to $10 million.
“We’re mainly interested in high-growth, scalable companies that are trying to solve key problems in Africa by leveraging technology.” – TLcom Capital
Portfolio Performance
TLcom Capital’s approach has delivered strong results, especially in Nigeria. Some standout portfolio companies include:
| Company | Sector | Investment Outcome |
|---|---|---|
| Andela | Tech Talent | Secured $180M fundraise |
| Kobo360 | Logistics | Raised $30M funding |
| SeamlessHR | HR Tech | Closed $9M Series A extension |
| Vendease | – | Portfolio company |
| Okra | Fintech | Portfolio company |
Business Support
Beyond funding, TLcom Capital provides hands-on support to its portfolio companies, including:
- Guidance on navigating regulations and expanding into new markets
- Access to networks for recruiting talent and forming partnerships
- Help in refining strategies for sustainable growth
“VC isn’t solely a matter of providing capital, it’s primarily about delivering critical business support that can help companies achieve their vision. Whether that’s through providing insights on regulation, creating access to talent through our networks, or refining their company strategy, we’re a fund that focuses on providing tangible business-building support for value generation.” – TLcom Capital
Investment Strategy
TLcom Capital’s TIDE Africa Fund, which launched with an initial $40 million close, focuses on African tech companies using mobile technology. Nigeria and Kenya are key markets for this fund.
“We are maintaining the same investment strategy for TIDE Africa Fund II as we had for our first fund, which made over 80% of its investments at Seed or Series A”.
10. Ingressive Capital
Ingressive Capital is an early-stage investment firm based in Nigeria, backing pre-seed and seed-stage African tech startups. They offer investments of up to $500,000 in exchange for a 10% ownership stake.
Investment Focus
Ingressive Capital prioritizes startups with strong growth potential across various industries. Their primary areas of interest include:
| Sector | Focus Areas |
|---|---|
| Financial Services | Digital payments, lending platforms |
| Marketplace | E-commerce, digital marketplaces |
| Wellbeing | Healthcare technology, lifestyle solutions |
Notable Investments
Ingressive Capital has backed several successful Nigerian startups, helping them achieve impressive milestones:
- Paystack: A fintech leader that expanded across Africa and became one of the continent’s standout exits. Founder Shola Akinlade shared:
“Working with Maya has been fantastic. She supports us without causing distractions and advocates for us behind the scenes. When she introduces us to potential partners or customers, the conversations are smooth because she’s already done the hard work of convincing them. We just need to close the deal.” - Healthtracka: A platform transforming healthcare access with at-home lab testing services, delivering results within 72 hours.
- Grey: A company scaling cross-border payment solutions across multiple markets.
In addition to funding, the firm provides extensive support services to its portfolio companies.
Beyond Funding: Support Services
Ingressive Capital goes beyond financial backing by offering:
- A 90-day onboarding program
- Help with strategic business development
- Talent recruitment assistance
- Access to networks and partnership opportunities
Ayodeji Ogundiran, Founder of Fuelmetrics, highlighted their impact:
“Ingressive Capital has provided much more than cash investment for our startups. We have benefited from the vast influence of Ingressive Capital in scaling our business. In particular, Ingressive has helped us reach hard-to-get clients, brokered institutional partnerships and provided business advisory services for Epump.”
Driving Results for Startups
The firm’s active involvement has delivered measurable results for its portfolio companies. Akan Nelson, founder of Evolve Credit, shared:
“In 2020 Ingressive Capital acted as a super-connector for Evolve Credit. Whether we needed introductions to potential team members for recruitment, experienced entrepreneurs for strategic advice, or local banks for partnerships, we knew we could count on IC to find someone on their team to make an intro.”
With Africa’s digital economy projected to hit $180 billion by 2025, Ingressive Capital’s focus on founders solving local challenges has cemented its role as a major player in Nigeria’s startup ecosystem.
Current Investment Patterns
Nigeria’s startup ecosystem, particularly in Lagos (valued at over $9 billion), secured $218 million in funding in 2024. This accounted for 13% of all African startup investments. Let’s take a closer look at how these investments are distributed across various sectors.
Sector-Specific Investment Distribution
Venture capital firms are channeling funds into sectors driven by technology. Here’s a breakdown of where the money is going:
| Sector | Key Investment Areas | Notable Examples |
|---|---|---|
| Fintech | Digital Banking, Payments | Kuda (Launch Africa), Bamboo (Ingressive Capital) |
| Healthcare Tech | Telemedicine, Infrastructure | MDaaS (Ventures Platform), Clafiya (Microtraction) |
| Agriculture Tech | Supply Chain Solutions | Releaf (Future Africa) |
| Education Tech | Online Learning Platforms | uLesson (TLcom Capital) |
| Legal Tech | Practice Management | NexCounsel (EchoVC Partners) |
Emerging Investment Trends
With mobile phone usage surpassing 80%, digital solutions that tap into this connectivity are increasingly attractive to investors. Corporate players are also stepping into the funding scene, reshaping how Nigeria’s economy evolves. This reflects a growing emphasis on strong teams; as one venture capitalist put it, “It’s the team that means everything.”
These trends are driving varied results across key industries.
Sector Performance Highlights
- Fintech Growth
Companies like Moove, supported by Future Africa, are extending their mobility-focused fintech solutions beyond Nigeria, reaching markets like the UAE. - Healthcare Advancements
Startups such as Helium Health are revolutionizing healthcare through digital platforms that improve medical records, financing, and patient interactions. - Sustainable Transportation
In early 2025, Shuttlers introduced 20 CNG-powered vehicles and completed 1,484 trips, showcasing the rising demand for eco-friendly transport solutions.
Investment Outlook
The global venture capital market is expected to hit $279.80 billion in 2024. Investors are increasingly drawn to startups that make services more accessible, reduce delivery costs, address market gaps, and scale effectively. This shift highlights a maturing ecosystem focused on scalable and efficient business models.
State Support Programs
The Nigerian government has taken steps to encourage startup growth through targeted policies and funding. One of the key initiatives is the Nigeria Startup Act 2022, which provides a structured framework for startup development.
A $618 million fund has been launched to support the tech and creative industries. This fund combines contributions from both public and private sources, as shown below:
| Funding Partner | Contribution |
|---|---|
| African Development Bank | $170 million |
| Agence Francaise de Developpement | $116 million |
| Islamic Development Bank | $70 million |
| Bank of Industry (Nigerian Government) | $45 million |
| Private Sector | $217 million |
The National Council for Digital Innovation and Entrepreneurship oversees programs aimed at accelerating startup growth. One such program, the Startup Investment Seed Fund, managed by the Nigerian Sovereign Investment Authority (NSIA), focuses on providing early-stage funding for promising ventures.
“The Nigeria Startup Act is a collaborative framework to unlock Nigeria’s digital economy potential by ensuring regulatory certainty, creating an enabling business environment, and fostering local content to attract investment and create job opportunities.” – Startup Nigeria
In addition to funding, the government prioritizes skill development. For example, in March 2020, the Ministry of Communications and Digital Economy partnered with IBM to offer Nigerians 280 hours of free training in emerging technologies.
The Investment in Digital and Creative Enterprises (iDICE) program highlights the government’s commitment to fostering innovation. Vice President Yemi Osinbajo stated:
“iDICE is a government initiative to promote innovation and entrepreneurship in the digital tech and creative industries and especially targeted at job creation.”
To further support startups, the Startup Support and Engagement Portal was introduced. This platform simplifies the registration process, connects startups with investors, and provides resources for growth.
Research shows that over 90% of countries studied have integrated digital entrepreneurship into their core support policies. Nigeria’s Bank of Industry also runs the Youth Entrepreneurship Support Program, offering online training and mentorship for entrepreneurs aged 18–35.
These initiatives, combined with private sector investments, are building a stronger foundation for startup growth and innovation in Nigeria’s evolving business environment.
Conclusion
Nigeria’s startup ecosystem is growing rapidly, with over 3,300 startups making their mark across various industries. Lagos stands out as the epicenter of innovation, driving much of the country’s entrepreneurial momentum.
Investors in Nigeria are doing more than just providing funding. They’re offering critical support that helps startups scale and thrive. For example, Ventures Platform played a key role in Moniepoint reaching unicorn status and helped MDaaS Global expand its diagnostic services across Africa.
Key industries have seen notable achievements:
| Sector | Notable Success Stories | Impact |
|---|---|---|
| Fintech | Flutterwave, Moniepoint, Bamboo | Making financial services more accessible |
| Healthtech | MDaaS Global, Clafiya | Enhancing access to healthcare |
| Edtech | uLesson | Broadening educational opportunities |
| Agritech | Releaf | Improving agricultural supply chains |
In 2024, Nigerian startups raised $218 million, accounting for about 13% of all funding secured by startups across Africa. However, challenges remain, with 51% of Nigerian startups still facing difficulties in securing funding.
“When seeking venture capital, it’s about more than just the money. You need to find a partner who shares your vision and offers strategic support.” – Techpoint Africa
Government initiatives, like the Nigeria Startup Act, combined with dedicated investor backing, are setting the stage for continued growth. Sectors such as fintech, agritech, healthtech, e-commerce, and climate tech are receiving increased attention, reflecting a clear focus on areas with high growth potential.
These examples highlight how thoughtful investment, combined with mentorship, can create businesses that compete on a global scale. Companies like Moove, Andela, and Piggyvest showcase how Nigerian startups can gain international recognition while addressing local needs.
Tips for Startup Funding
After reviewing detailed investor profiles, use these tips to secure funding more effectively.
Getting Your Documents Ready
Strong documentation is key to gaining investor trust. Make sure you have:
- Updated filings with the Corporate Affairs Commission (CAC)
- A signed founders’ agreement
- Verified SAFE agreements
- A clear litigation history
- Professional team profiles on LinkedIn
Choosing the Right Investors
Once your paperwork is in order, focus on finding investors who align with your business. Here’s what to consider:
| Criteria | What to Look For |
|---|---|
| Sector Focus | Investors with experience in your industry |
| Investment Stage | Whether they fund early-stage, Series A, or growth |
| Value Addition | Mentorship, networking, and strategic advice |
| Track Record | Proven success in similar ventures |
| Exit Alignment | Shared long-term goals and vision |
“You can’t truly secure an angel investment but you can de-risk it with due diligence and proper governance.” – Oo Nwoye
Avoiding Common Mistakes
Steer clear of these typical errors to improve your chances:
- Starting Too Early: Focus on bootstrapping and landing early customers before seeking funding. This shows your business has potential.
- Misunderstanding the Role of Funding:
“Funding is not a source of revenue. It is a short-term lifeline to gain traction.”
- Poor Planning: Align your funding needs with key milestones to avoid running out of resources halfway through.
How to Engage Investors
Once you’ve avoided the common pitfalls, focus on building strong relationships with investors. Prepare a solid pitch that highlights:
- Your revenue growth strategy
- A realistic market analysis
- How you stand out from the competition
- A sustainable business model
- Intellectual property protections
Also, take advantage of investors’ networks and expertise to help your startup grow.
“Startup investment is extremely risky. Only invest amounts you are willing to lose.” – Osita James, Partner at BlackcrestLP
