In today’s world, having a great idea and a strong will to succeed is just not enough, especially if you are an entrepreneur who is looking to start a business, grow and scale.
Lack of funding is a common reason why most startups fail. The exciting journey from having an idea to growing a company that offers beneficial services to people requires capital, but getting this capital can be quite tasking. You have to know what you want, where to look, and also be prepared to do the work required to pitch your ideas to prospective investors.
In recent times, the Nigerian Tech sector has gained a lot of traction in terms of funding. According to a report, foreign investors contributed $85.8 million out of the approximately $120.6 million that Nigerian startups raised in the year 2020.
Who is a Venture Capitalist (VC)?
A venture capitalist is a person or company that invests in a business venture, providing capital for startup or expansion. Venture capitalists are defined by the large investments they make in a promising startup or young business.
So, if you are looking to raise money for your startup, here are some VC firms in Nigeria offering funds to startups.
- FirstCheck Africa, a female-focused angel fund, is making it easier for African women in tech to raise capital by writing “ridiculously early” first checks and creating pathways for more African women to invest in technology startups.
- Founded by Eloho Omame and Odunayo Eweniyi, FirstCheck is creating more opportunities for women & diverse teams to raise capital, and for more women to invest in tech.
- FirstCheck Africa will invest up to $25,000 in each woman that it supports, working to help raise a significant pre-seed round within 12 months.
- Future Africa provides capital, coaching, and community for mission-driven innovators “building an African future where prosperity and purpose are within everyone’s reach.”
- Founded by Iyin Aboyeji, the platform connects mission-driven innovators and investors looking to turn Africa’s most difficult challenges into global business opportunities.
- Some of the popular Nigerian startups in Future Africa’s portfolio include Andela, Chaka, Flutterwave, 54gene, bamboo, rise, Eden, evolve credit, and many more.
Greentree Investment Africa
- Greentree is an investment company that invests in people who love what they do. The company is committed to the growth of the businesses they invest in, leveraging their extensive collective expertise to grow and add value to their portfolio companies.
- Founded in 2014, the company has funded many startups, most notable of which include Paystack, Precurio, and Big Cabal Media.
- Ventures Platform is a Pan-African early-stage fund focused on supporting post MVP teams to grow their startups. Ventures Platform invests in seed and early-stage companies that are operating in markets that have existing positive offline indicators. It was founded by Kola Aina, an avid angel investor and startup mentor.
- Some of the popular Nigerian startups in the Ventures Platform portfolio include Paystack, Tizeti, Thrive agric, Kudi, Piggyvest, Trove Finance, Brass, Mono.
Echo VC Partners
- Echo VC is a technology-focused early-stage VC firm focused on unapologetically investing in women, underrepresented founders (particularly of African descent), and underserved POC markets, backing bold ideas and business models that harness the power of technology to deliver value to mass markets.
- Some startups in their portfolio include Lifebank, Lori, hotels.ng, Migo, and Netplusdotcom.
- TLCom supports innovative entrepreneurs that leverage technology to find market solutions to significant challenges. They invest between $500k and $10m dollars in companies.
- Some companies in their portfolio include Andela, kobo 360, autochek, uLesson, and ilara health.
- Microtraction funds smart, relentlessly resourceful founders who are building high-growth, technology-driven businesses in billion-dollar markets. They typically invest $25,000 for 7%.
- Startups in their portfolio include Cowrywise, Buycoins, Bitsika Africa, Thankucash, sendbox, and many more.
If you have a product or a business idea, you can leverage these VC firms to give your business the chance to live to its full potential.