Funding is a very critical aspect for the nurturing of a technology startup but raising Venture capital funds isn’t as simple as one might think. Fortunately, Nigerian startups have raised more Venture capital funds in a month than the whole of 2020, the first quarter of 2021 alone has seen startup Venture capital funding increase to $42,145,999. With these stats, it’s easy to mistake Venture capital as funds collected from different individuals or companies with high net worth alone and overlook the other forms of venture funding which can be both managerial or technical expertise.
One reason experts say is responsible for the rise in funding is growing confidence driven by returns on investment of venture capitalists in the country.
The March investment of flutter wave and Paystack’s acquisition puts Nigeria at an advantage of countries leading in funding activities which from an optimistic point will lead to more venture capitalists coming into the country. No wonder companies like Facebook, Google, Microsoft, and African companies like MTN, Standard Bank, First City Monument Bank, are always looking for the next big thing.
From a technical point of view, the increase of Venture capital deals in Nigeria and Africa can also be traced to innovation programs by tech hubs that are designed to stimulate growth, increase capacity, and nurture startups to be Venture capital ready, some such programs are geared towards being venture and market-ready.
Hubs like Hubone by Fcmb managed by Leadspace by Passion Incubator alone have impacted 3,000 startups with innovative programs such as Startup Funding: A Guide To Raising Venture Capital or Angel Investment with Olumide Soyombo a Nigerian angel investor and past innovative programs which includes speakers like Shola Akinlade (co-founder at Paystack) Chinedu Azodoh (co-founder at MAX.NG), Segun Adeyemi (ex-cofounder of Amplify) have played crucial roles in nurturing startups to be venture capital ready.
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