The Nigerian startup ecosystem is ripe for investment. Setting new record rounds, Nigeria has displayed significant growth in its ecosystem as well as increased investor trust in Nigerian enterprises. The country now draws the most investment of any African country, rivaling other large ecosystems such as South Africa and Egypt. The local investment scene is well-established and active in early-stage investments, whilst later-stage businesses can turn to international investors for further rounds.
The robust local angel investor culture is also worth noting, with successful entrepreneurs willing to fund and mentor the next-generation founders. Nigeria is the continent's principal startup hub offering a lot of promises. In this article, we have compiled a comprehensive list of the top VC funds and angel investors in Nigeria that may be the right funding partner for you!
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Why Should You Raise Funds in Nigeria?
Here are some reasons you should consider raising funds for your startup in Nigeria:
1. Strong Startup Funding:
Nigeria is the continent's most favored investment destination. Between 2015 and 2022, the total amount of investment secured by Nigerian startups amounted to USD 2,068,709,445 - a significant figure compared to other neighboring countries. These investments are made by at least 641 entities, as opposed to 382 and 203 investors from South Africa and Egypt respectively. The growing maturity of the Nigerian ecosystem is highlighted by the increased rate of its investments; hiking up 1413.9% from 2015 to 2022. Nigeria also hosted the largest deal on record, with the fintech Flutterwave receiving a US$250 million Series D financing.
2. Numerous Startup Support: Nigerian startups benefit from numerous ecosystem support, such as startup incubators and accelerators. According to Disrupt Africa's Nigerian Startup Ecosystem Report 2022, almost half of the 481 firms monitored by the survey had participated in some sort of acceleration or incubation program since their formation. Many of these startups accessed such support services from the Lagos-based Co-Creation Hub, as well as a host of other programs that have been active since. Nigerian startups are also more likely to be selected for renowned international programs such as Y Combinator and Techstars, more so than those hailing from other countries on the continent. Furthermore, in October 2022, the Nigeria Startup Bill (NSB) received approval from President Muhammadu Buhari. The Bill is a specialized law aimed at supporting entrepreneurs which provides tax incentives for businesses and their employees, as well as a channel for communication with government officials.
3. Active and Thriving Startup Ecosystem: As one of the continent's oldest startup ecosystems active since the early 2000s, Nigeria is one of Africa's "big four" ecosystems alongside Egypt, Kenya, and South Africa. There are at least 481 startups operating across the nation as of August 2022, most of them operating out of Lagos, the startup hub that vies with Cape Town and Nairobi for the title of leading startup metropolis on the continent.
Venture Capitalist Funds in Nigeria
The venture capitalist funds below are actively looking for investments in promising companies throughout various stages and sectors. The stages stated do not limit the possibility of getting funding if your company is at any stage other than what is listed.
Year of Inception: 2017
Stage: Pre Seed
Focus: Technology
Notable Portfolio: Wallet.ng, Schoolable, Sendbox, 54gene, Chaka, BuyCoins
Microtraction offers the most accessible pre-seed investment for early-stage, African technology startups. They invest at a minimum USD100,000 and offer professional and consulting services to portfolio startups. They also assist startups in connecting with later-stage investors and securing further rounds of investment.
Year of Inception: 2015
Stage: Pre Seed, Seed
Focus: Social Impact
Notable Portfolio: Paystack, Lemonade Finance, Brass, Migo, SeamlessHR
Ventures Platform is an early-stage VC that invests in mission-driven African technology startups that are shaping the continent's future. They are interested in innovators developing capital-efficient platforms that democratize wealth, bridge infrastructure gaps, connect marginalized people, address non-consumption, and enhance livelihoods in Africa.
Year of Inception: 2017
Stage: Pre Seed, Seed
Focus: Technology
Notable Portfolio: Paystack, Bamboo, Jetstream, 54gene, Carry1st
Ingressive Capital invests in the next generation of African entrepreneurs. They provide up to USD 400,000 in exchange for 10% ownership in African tech-enabled startups. As part of their portfolio, Ingressive Capital will provide support in expanding and scaling through business development, network and partnerships, and financial assistance; as well as provide opportunities for follow-on rounds through their own investor base
Year of Inception: 2017
Stage: Pre Seed, Seed, Series A
Focus: Technology
Notable Portfolio: Voyance, BFREE, PayHippo, AjoCard, BetaStore
Beta.Ventures invest in visionary creators that will move us closer to a future based on technology and science. Operating from New York and Lagos, Beta.Ventures leverage its wide network of partners, affiliates, and mentor to assist tech startups in growing locally and worldwide. From product idea through product launch and future development, Beta.Ventures will collaborate closely with teams and lend their expertise in developing outstanding products/services, negotiating partnerships and agreements, leading teams, and raising capital.
Year of Inception: 2018
Stage: Seed
Focus: Technology
Notable Portfolio: Zone, Schoolable, Lori, Zumi, mPharma, Indigo
Timon Capital backs businesses that utilize technology to reshape markets. They invest largely at the Seed stage, searching for firms with a working product and early evidence of traction and participating in the first institutional funding. As an investor, they aim to actively participate in assisting the firms they support - be it course financing plans, assisting with secondary transactions, bringing global talents, and more.
Year of Inception: 2021
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Showlove, Bitmama, TeamAPT, ZirooPay, Zilla
Fedha Capital is a sector-agnostic venture capital firm founded by 5 entrepreneurs with multi-industry backgrounds and experience. They have pooled together their resources to invest in and collaborate with entrepreneurs bringing forth a series of solutions to the financial and capital-intensive challenges in Africa.
Year of Inception: 2019
Stage: Seed, Series A, Series B
Focus: Technology
Notable Portfolio: Raise, Bamboo, Helium Health, Bankly, Sabi, Koa
Chrysalis Capital is a venture capital firm that focuses on early-stage technology startups in emerging markets, concentrating on projects that fulfill basic human necessities. They use their proprietary tool Chaterpillar to uncover the top entrepreneurs who are inventing innovative solutions and assist them as they grow into powerful global institutions.
Year of Inception: 2011
Stage: Seed, Series A, Series B
Focus: Technology, Smart Planet, Health and Human Services, Emerging Fintech, The Next Frontier, Commerce, Media & Entertainment, Access to Energy, Sustainable Mobility, Connectivity
Notable Portfolio: Migo, Gro Intelligence, Ando, TradeX, Octamile
EchoVC is a technology-focused, sector-agnostic, early-stage VC firm investing in founders from underrepresented backgrounds and underserved POC markets. They support diverse teams and invest in daring ideas with business models that use technology to offer value to mass audiences. They operate in 12 countries across Africa, the United States, and the United Kingdom; catering to the many market possibilities they identify and financing entrepreneurs tackling important pain points.
Year of Inception: 2018
Stage: Seed, Series A, Series B, Series C
Focus: AdTech, FinTech, Healthcare, Logistics/Mobility, Saas
Notable Portfolio: Duplo, Intelligra, HerEconomy, Dr CADx, NDOVU
Oui Capital, derived from the French word Oui meaning 'yes', seeks to be one of the first "yeses" entrepreneurs receive as they begin their business journey. They invest in and collaborate with entrepreneurs as they establish their technology-enabled solutions that will impact Africa. Aside from capital, they equip businesses with the tools and resources they need to accomplish large-scale growth; assisting in areas such as product strategy, global expansion, key hiring, collaborations, funding, and operations.
Year of Inception: 2016
Stage: Seed, Series A, Series B, Series C
Focus: Sector Agnostic
Notable Portfolio: Youverify, SAFI, Hirefreehands
Chinook Capital provides early capital to extraordinary entrepreneurs to help them convert great ideas into remarkable companies and expand their new firms. They provide investees with more than just finance; but also assistance with market validation, product design, product-market fit, customer discovery, and establishing fundable and scalable businesses.
Year of Inception: 2019
Stage: Seed, Series A, Series B, Series C
Focus: Technology
Notable Portfolio: Tizeti, Bento, Paystack, Sendy, Curacel, OnePipe
Atlantica Ventures is a data-driven early-stage investor that focuses on tech and tech-enabled startups in Africa. With decades of expertise, significant partner networks, and an extensive data analytics team, they provide financing and operational direction to investees as they develop inside their markets, across Africa, and internationally.
Year of Inception: 2012
Stage: Series A, Series B, Series C
Focus: Climate
Notable Portfolio: Beacon Power Services, SolarTaxi, CarbonClear, Migo, Candi
Though not necessarily a venture capital firm, Persistent Energy is a leading African venture builder and early investor that provide financial capital and human resources to early-stage firms in the renewable industry. Their focus is on providing human and financial capital, utilizing their knowledge through hands-on strategic and operational financial management, including capital raising and structuring, business analytics and KPI tool creation, and legal and human capital.
Year of Inception: 2014
Stage: Series A, Series B, Series C
Focus: FinTech
Notable Portfolio: Pezesha, Flutterwave, Apaya, BFREE, Dojah, Helium Health
GreenHouse Capital invests funds and specialized knowledge in firms that are developing fintech and fintech-enabled solutions to fuel Africa's economic future. As an investor, they cultivate long-term partnerships with entrepreneurs and provide them with connections to corporations and other investors.
Year of Inception: 2014
Stage: Series A, Series B, Series C
Focus: Sector Agnostic
Notable Portfolio: BasiGo, Elephant, GreenPath, Ignitia, Komaza
Novastar Ventures was founded to drive entrepreneurial initiatives that can revolutionize African markets and industries. They invest in projects that can create long-term benefits for the good of the masses. With offices in Lagos, London, and Nairobi, they collaborate with entrepreneurs who are inventing solutions to the continent's most pressing issues.
Year of Inception: 1999
Stage: Series A, Series B, Series C
Focus: Technology
Notable Portfolio: Twiga Foods, Ajua, Andela, Kobo 360, Terragon, Shara
Founded in 1999, TLcom Capital is one of the longest-running VC firms in Nigeria that have supported innovative tech entrepreneurs in building the future of the continent. They invest in technology-based solutions for significant challenges in the traditional industries, making way for creative new industries to emerge.
Year of Inception: 2017
Stage: Series A, Series B, Series C
Focus: Technology
Notable Portfolio: Carry1st, Mono, Workstyle, Koko, AppZone
Lateral Frontiers aim to collaborate with entrepreneurs who are developing core technologies for Africa. Through their investments, extensive networks, mentorship, and strategic advice, they aim to be the most trusted value-add partner to their entrepreneurs across various industries.
Angel Investors in Nigeria
The Angel investors listed below are part of an Angel community located throughout Nigeria. They may act as an individual or as a syndicate to fund projects of their preference, so these networks are the best opportunity for you to find a potential Angel with an aligned vision and interests.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
Founded in 2015, ABAN is the largest Pan-African angel investor network organization. ABAN serves as a contact point for angel networks across the continent and supports its members in building the African early-stage investment market. You can browse through their network directory to find other angel networks. They also run Catalytic Africa in collaboration with Afrilabs, a co-investment Platform that matches angel investor investments in businesses from innovation hubs.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio:
Rising Tide Africa is a group of female angel investors that leverage their influence, network, and wealth to positively affect and actively create a New Africa. RTA manages an investment pool focused on digitally and technologically enabled enterprises at their early stages, that are largely female-owned, female-led, or have a gender-diverse leadership and management team. They are actively involved in the development of business literacy among African women by providing Masterclasses, Mentorship Clinics, Deal Day Events, as well as other investment assistance, coaching, and training.
Closing Thoughts on VCs and Angel Investors in Nigeria
In recent years, startups born and grown in Nigeria have showcased their ability to compete well with startups in other heavyweight ecosystems across the world. The recent record quantity of funds raised by Nigerian entrepreneurs demonstrates this sentiment; with a higher degree of optimism and faith that investors have put into the growing ecosystem. The active involvement of local and international partners in the country has also contributed to the expansion and development of Nigeria's entrepreneurial network. Overall, Nigeria is poised for new growth and will surely bring bigger wins into its space.
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