Nigeria hosts the most startups in Africa, with 3,360. This rapid growth makes the country a hub for innovation and entrepreneurship on the continent.
This growth comes from factors like a growing population and increasing internet access. However, top venture capital firms’ access to funding and investment opportunities significantly drives this success.
In 2024, Nigerian startups raised $218 million, accounting for nearly 13% of all funding raised by African startups. Also, Moniepoint became Nigeria’s latest unicorn after securing $110 million in a funding round.
Nigeria ranks as one of the top investment destinations in Africa, attracting venture capital firms eager to support its startup ecosystem. These firms offer the funding and mentorship needed to scale your business.
I’ll walk you through Nigeria’s top venture capital firms in this article. You’ll discover their investment focus, the sectors they support, their key portfolios, and how to find the right venture capital firm for your startup.
Key takeaways
- Nigeria hosts the largest number of startups in Africa, with over 3,300 startups.
- Access to funding and investment opportunities from venture capital firms in Nigeria contributes to the growth of Nigeria’s startup ecosystem.
- There are several factors to consider when choosing a venture capital firm, including industry focus, location, track record, value-added services, and terms and conditions.
- In applying for VC funding, negotiating and closing a deal requires carefully reviewing terms and conditions and equity stakes.
- Nigerian startups face challenges securing VC funds, such as limited investor access, rigorous selection processes, currency volatility, and regulatory barriers.
What are venture capital firms?
Venture capital (VC) firms focus on funding startups and businesses with high growth potential. VC funding usually involves exchanging equity or partial ownership. It is often targeted at early-stage startups with innovative ideas. However, even established companies may seek funding at later stages depending on their needs and goals.
Startups typically seek funding when they lack the resources to grow independently, need capital to launch a new business, or aim to expand or introduce new technologies.
VC firms support tech-driven solutions, such as fintech innovations, agriculture, eCommerce, entertainment, climate, and education, by providing capital, mentorship, and access to valuable networks.
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Nigeria’s startup ecosystem is thriving. The top cities in the country with the most vibrant ecosystems include Lagos, Abuja, Enugu, and Port Harcourt. Lagos alone boasts a startup ecosystem valued at over $9 billion.
Top venture capital firms in Nigeria
1. Future Africa
| Field | Details |
|---|---|
| Firm Name | Future Africa |
| Year Established | 2016 |
| Headquarters Location | Lagos, Nigeria |
| Key Focus Areas | Invests across multiple sectors, including agriculture & environment, data & artificial intelligence, e-commerce & consumer goods, education, jobs & talent, finance & blockchain, food & hospitality, health & wellness, media & entertainment, mobility, transport & logistics, real estate, technology, software, and infrastructure. |
| Investment Stage | Primarily focuses on seed-stage investments, with typical investment sizes ranging from $100,000 to $500,000. |
| Notable Investments | It boasts a global network of community members across government, business, venture capital, and academia, providing a robust support system for portfolio companies. |
| Fund Size | Manages a portfolio of over 60 companies, including 2 unicorns, with co-investments from 157 investors. |
| Founding Partners | Future Africa partners with mission-driven innovators, turning the continent’s most difficult challenges into global business opportunities. |
| Website | future.africa |
| Contact Information | General inquiries can be directed through their website’s contact form. |
| Mission/Philosophy | It boasts a global network of community members across government, business, venture capital, and academia, providing a robust support system for portfolio companies. |
| Network Strength | Boasts a global network of community members across government, business, venture capital, and academia, providing a robust support system for portfolio companies. |
| Support Beyond Funding | Offers capital, coaching, and a growing community of advisors to assist startups in scaling their businesses effectively. |
| Local/Global Presence | While headquartered in Nigeria, Future Africa has a pan-African investment focus, supporting startups across the continent. |
The VC firm Future Africa, founded by Iyinoluwa Aboyeji, focuses on funding early-stage startups serving the African market. The firm offers founders and startups the funding, mentorship, and support they need to grow their solutions and serve their audience.
Future Africa prioritizes key sectors like fintech, healthcare, education, and agriculture.
Portfolio highlights
2. EchoVC Partners
| Attribute | Details |
|---|---|
| Founded | 2011 |
| Founder | Eghosa Omoigui |
| Headquarters | Lagos, Nigeria |
| Offices | Lagos, Nairobi, New York, London |
| Investment Focus | Sector-agnostic; notable sectors include Smart Planet, Health and Human Services, Emerging Fintech, Commerce, Media & Entertainment, Access to Energy, Sustainable Mobility, and Connectivity. |
| Portfolio | 94 companies across 24 sectors and 11 countries, including the United States, Nigeria, Kenya, and the United Kingdom. |
| Notable Investments | Life360, Yatra, Frontier Car Group, Hotels.ng |
| Investment Criteria | In November 2023, we announced the close and launch of a $2.5 million Pre-Seed Climate, Energy, and Sustainability Pilot Fund (Eco Pilot Fund I). |
| Recent Developments | In November 2023, announced the close and launch of a $2.5 million Pre-Seed Climate, Energy, and Sustainability Pilot Fund (Eco Pilot Fund I). |
| Contact Information | Proposals can be submitted through their official website. |
EchoVC Partners is a venture capital firm that funds tech-driven, early-stage startups. Their investment focuses include e-commerce, fintech, health, media, and entertainment.
Portfolio highlights
- NextCounsel: EchoVC Partners backed NexCounsel at the seed stage. NextCounsel is an automated legal practice management tool for lawyers and law firms.
- Printivo: The VC funded Printivo at the seed stage. The startup is a Nigerian digital printing startup that offers an automated online print service.
3. GreenHouse Capital
| Attribute | Details |
|---|---|
| Founded | 2014 |
| Founder | Venture Garden Group |
| Headquarters | Lagos, Nigeria |
| Investment Focus | Fintech and fintech-enabled startups across Africa and the Middle East. |
| Portfolio | Over 50 companies operating in 15 countries. |
| Notable Investments | Pezesha, Rensource, NOW Money, Dapi, Tanda. |
| Average Check Size | $250,000 |
| Acceleration Programs | 10 programs designed to support early-stage startups. |
| Recent Developments | Launched a second fund, deploying $6 million across 20 companies. |
GreenHouse Capital invests in tech companies with innovative ideas and solutions, helping founders to achieve a competitive edge. The firm also founded Venture Garden Group (VGG).
Key investment areas include fintech, health, blockchain, and payments.
Portfolio highlights
- Busha (Pre-Seed): Busha is a Nigerian startup that offers a platform for buying and selling Bitcoin or other crypto assets.
- Yellow Card (Series A): Yellow Card is a cryptocurrency platform that offers buying, selling, sending, and receiving crypto.
- Zone (Seed): Zone is a Nigerian startup that offers a layer-1 blockchain protocol, enabling payments and the acceptance of digital currencies.
4. Ventures Platform
| Attribute | Details |
|---|---|
| Founded | 2016 |
| Founder | Kola Aina |
| Headquarters | Abuja, Nigeria |
| Investment Focus | Ventures Platform invests in companies that solve for non-consumption, plug infrastructural gaps, and democratize prosperity in Africa by eliminating barriers to access and reducing the costs of delivering goods and services. |
| Portfolio | The firm has over 75 active portfolio companies operating across 6+ countries, with a collective follow-on capital raised exceeding $1 billion. |
| Notable Investments | Paystack, Piggyvest, SeamlessHR, Mono, Brass, Remedial Health, and Chargel. |
| Fund Size | In December 2022, Ventures Platform announced the final close of its Pan-African fund at $46 million, exceeding its initial target. |
| Investment Criteria | The firm seeks startups with innovative solutions that address significant market needs, particularly those that democratize access and reduce delivery costs. |
| Recent Developments | Ventures Platform has expanded its team and strategic partnerships to better support its portfolio companies, including the addition of new partners and senior management members. |
Ventures Platform is a VC firm that invests in African startups solving problems related to non-consumption, democratizing wealth, and addressing infrastructure gaps. Ventures Platform focuses on financial services, health, fintech, and the Internet, investing across seed, pre-seed, and funding rounds.
Portfolio highlights
4. Microtraction
| Attribute | Details |
|---|---|
| Founded | 2017 |
| Founder | Yele Bademosi |
| Headquarters | Lagos, Nigeria |
| Investment Focus | Sector-agnostic; invests in high-growth, technology-driven businesses operating in billion-dollar markets. |
| Standard Deal | Invests $100,000 for 7% equity via a post-money SAFE, with an option for a quick top-up of up to $350,000 in subsequent rounds, provided certain milestones are met. |
| Portfolio | As of 2023, Microtraction has invested in 67 companies across various sectors, including fintech, SaaS, e-commerce, and health tech. |
| Notable Investments | Cowrywise, 54gene, BuyCoins, Wallets Africa, Lemonade Finance, and Chaka. |
| Fund Size | In August 2022, Microtraction announced the first close of its second fund at $15 million, aiming to invest in over 60 startups across Africa. |
| Recent Developments | In 2023, Microtraction invested in 12 new companies, expanding its portfolio to 67 startups. The firm also hosted its inaugural Founders retreat in Lagos, Nigeria, to support portfolio companies. |
Microtraction funds early-stage tech startups that build globally relevant, high-growth technology businesses operating in billion-dollar markets.
Their investment focus includes financial services, fintech, and software, offering pre-seed, seed, and angel funding.
Portfolio highlights
- Cowrywise (Pre-Series A): Cowrywise is a savings and investment platform designed to help you manage your finances.
- Clafiya (Pre-Seed): Clafiya is a digital health platform that combines in-person care with virtual solutions to deliver personalized healthcare services.
- Bumpa (Seed): Bumpa is a business management app that enables you to grow and manage your small or medium-sized business (SMB) both online and offline.
5. TLcom Capital
| Attribute | Details |
|---|---|
| Founded | 1999 |
| Headquarters | London, United Kingdom |
| African Offices | Nairobi, Kenya; Lagos, Nigeria |
| Investment Focus | Early to growth-stage tech-enabled businesses in Sub-Saharan Africa, across sectors such as fintech, mobility, agriculture, healthcare, education, and commerce. |
| Fund Size | Manages total commitments in excess of $300 million; recently closed TIDE Africa Fund II at $154 million, marking it as Africa’s largest early-stage VC fund. |
| Investment Range | Initial investments between $1 million and $3 million, with significant follow-on capacity to support portfolio companies into their growth stages. |
| Notable Investments | Andela, Twiga Foods, uLesson, Autochek, Pula, Ilara Health, Kobo360, SeamlessHR, Shara, Terragon Group, Vendease, and Zone. |
| Recent Developments | Expanded investment focus to include Egypt; committed additional capital to female-founded African tech startups, building on a $2 million co-investment with FirstCheck Africa. |
TLcom Capital is an Africa-focused tech venture capital firm with offices in Lagos, Nairobi, and London. Their investment focus includes data services, financial services, eCommerce, health, education, energy, media, and entertainment. TLcom actively invests through its TIDE Africa Fund, targeting early- to growth-stage companies.
Portfolio highlights
- Lesson: This edtech platform makes education accessible for African students through online learning.
- Andela: Andela connects tech talent with global companies, helping to source, screen, and onboard professionals.
- Zone: Zone operates as a regulated blockchain network, enabling payments and the acceptance of digital currencies.
6. Ingressive Capital
| Attribute | Details |
|---|---|
| Founded | 2017 |
| Founder | Maya Horgan Famodu (ingressivecapital.com) |
| Headquarters | Lagos, Nigeria |
| Investment Focus | Pre-seed and seed-stage tech-enabled companies operating in sectors such as fintech, SaaS & cloud, internet or ISP, healthtech, and agritech. |
| Fund Size | $50 million VC fund targeting early-stage startups across Sub-Saharan Africa’s key tech markets. |
| Investment Range | Provides financial backing of up to $500,000 for 10% ownership. |
| Notable Investments | Beyond funding, it offers mentorship, strategic guidance, and access to networks to help portfolio companies thrive. |
| Portfolio | As of 2024, Ingressive Capital has made 59 investments, with 41 active portfolio companies and 6 exits. |
| Support Services | Beyond funding, offers mentorship, strategic guidance, and access to networks to help portfolio companies thrive. |
Ingressive Capital invests in early-stage startups, focusing on founders building high-growth tech companies. The firm aims to partner with entrepreneurs and provide them with the necessary resources to turn their ideas into successful businesses. Its key investment sectors include logistics and fintech.
Portfolio highlights
- Bamboo: Bamboo is a digital investment platform that gives access to buy, hold, or sell stocks.
- SEND: Based in Nigeria, SEND is a digital freight forwarding and courier service for African businesses. It offers air cargo shipment services to Nigeria and manages the entire process.
- Bitnob: Bitnob is a financial services company that provides Bitcoin savings and purchases, collateralized loans, and remittance services.
7. Launch Africa
| Attribute | Details |
|---|---|
| Founded | 2020 |
| Founders | Zachariah George and Janade du Plessis |
| Headquarters | Ebene, Mauritius |
| Investment Focus | Seed and pre-Series A startups across multiple sectors, including fintech, healthtech, climate tech, agritech, edtech, transportation, logistics and mobility, e-commerce, SaaS, artificial intelligence, big data, and analytics. |
| Fund Size | Closed its first fund at $36.3 million in March 2022, investing in 133 startups across 22 African countries. |
| Investment Range | Typically invests between $250,000 and $300,000 in seed and pre-Series A startups. |
| Notable Investments | Kuda (Nigerian neobank), MarketForce (Kenyan B2B e-commerce platform), GOMYCODE (Tunisian edtech startup). |
| Recent Developments | Launched a second fund targeting $100 million, with $4.3 million already deployed across 16 startups in 11 African countries as of June 2024. |
Launch Africa provides funding for seed and pre-Series A startups. The firm backs startups across multiple sectors, including AI, agritech, fintech, and eCommerce.
Portfolio highlights (Seed Fund I)
- Bitmama: Bitmama is a crypto platform that allows you to buy, sell, or trade Bitcoin and other cryptocurrencies.
- Kuda: Kuda is a fintech company that offers digital banking services, including payment processing, transfers, deposits, and credit.
- Chekkit: Chekkit provides blockchain-powered technology that helps pharmaceutical and FMCG companies check for counterfeits, connect directly with their end consumers, and turn them into loyal customers.
Consonance Investment managers
Consonance is an early-stage and growth-stage investment firm that provides funding to founders building innovative companies across Africa. Their investment focus includes startups in financial services, insurance, food distribution, and education.
Portfolio highlights
- AFEX: AFEX is a commodity trade solutions company that facilitates the buying and selling of commodities, including agricultural products.
- Curacel is an insurtech startup that uses cloud-based tools and APIs to service insurance in emerging markets.
- Semicolon: Semicolon is an edtech startup that trains and empowers students to become tech professionals and entrepreneurs.
8. Chrysalis Capital
| Attribute | Details |
|---|---|
| Founded | 2019 |
| Founder | Nichole Yembra The Chrysalis Capital |
| Headquarters | Lagos, Nigeria |
| Global Presence | Offices in Lagos, Nigeria; New York, USA; and Bangalore, India |
| Investment Focus | Early-stage technology companies in emerging markets, particularly those addressing fundamental human needs in sectors such as agriculture, renewable energy, security, health, education, and financial technology |
| Portfolio | Investments in companies like Bamboo, Sabi, Arca, Carrot, Ladder, Bankly, Helium Health, and Koa |
| Approach | 22 Nathan Terrace, Babatunde Anjous Avenue, Lekki Phase 1, Lagos, Nigeria. Phone: +234 913 402 5959 York Office: 1180 Avenue of the Americas, 8th Floor, New York, NY 10036, USA. Phone: +1-212-847-9579 – Bangalore Office: WeWLagosk Galaxy, 43, Residency Rd, Shanthala Nagar, Bengaluru, Karnataka 560025, India. Phone: +91 08044451055 |
| Contact Information | 22 Nathan Terrace, Babatunde Anjous Avenue, Lekki Phase 1, Lagos, Nigeria. Phone: +234 913 402 5959 Office: 1180 Avenue of the Americas, 8th Floor, New York, NY 10036, USA. Phone: +1-212-847-9579 Bangalore Office: WeWLagosk Galaxy, 43, Residency Rd, Shanthala Nagar, Bengaluru, Karnataka 560025, India. Phone: +91 08044451055 |
Chrysalis Capital focuses on early-stage technology companies in emerging markets. It has backed startups in sectors such as health and fintech.
Portfolio highlights
- Helium: Helium Health is a health tech company that provides digital tools for medical records, health financing, and patient interaction to improve healthcare processes.
- Bankly: Bankly is a fintech company that offers payment processing through POS terminals and has also launched Bankly Microfinance Bank.
- Arca: Arca provides payment-related products and services to businesses of all sizes, including banks, financial institutions, SMEs, corporate businesses, developers, fintechs, and government institutions.
Additionally, other top venture capital firms in Nigeria include:
- Growth Capital
- HoaQ
- Leadpath Nigeria
- Alitheia
- Chapel Hill Denham
- Zedcrest
- Kepple
- LoftyInc
- Rising Tide Africa
- Chinook Capital Limited
- Musha Ventures
What makes a good venture capital firm for startups?
There are key factors to consider when choosing a venture capital firm for your startup; they include:
Industry or sector
Don’t just apply to or contact any VC firm. Instead, contact those that focus on your sector. This ensures that the firm understands your market, product, and audience. A VC firm with a different focus from yours can create conflicts of ideas and lead to misalignment. Contacting a VC firm that doesn’t focus on your industry may lead to application rejection.
Location
Some firms only invest locally, in a particular country, while others are open to investing across a broader region, such as Africa. Despite aligning with your industry, they may be funding startups outside your geographic location or target audience.
Track record, portfolio, and reputation
Analyze the firm’s track record by looking at the projects they’ve partnered with previously and their success stories. Media coverage often highlights the funding and backing of companies, and if your startup is backed by a firm with a negative reputation, it could impact your business negatively. A firm with a strong track record and reputation can attract influential partners, talent, and additional funding.
Value-added services and resources
Look for VCs offering value-added services beyond money, such as mentorship, advice, connections, exposure, or market access. This means you can leverage the firm’s experience to grow your company and better use the funding you receive.
Terms and conditions
Thoroughly review the offer’s terms and conditions. Have a professional review them before you agree to anything. Being in a cash-tight situation can cause you to overlook terms that could be detrimental to your startup’s growth, autonomy, or control. Consider the terms’ flexibility and transparency, and get clear guidelines in advance so you have a point of comparison.
Exit strategy
Make sure their exit strategy aligns with your company’s long-term goals. Additionally, evaluate the firm’s culture and style to ensure they match your values.
How to apply to a VC firm for your startup
Understand your startup’s stage and sector
You need to identify the stage and sector your startup belongs to since different VC firms focus on various areas. Some specialize in seed or early-stage funding, while others target growth or late-stage rounds. Most importantly, determine whether VC funding is the best option for your startup or if alternatives like grants or angel investors would be a better fit.
Research and make a list
Research and create a list of VC firms that meet your startup’s investment criteria.
Evaluate your options
Evaluate each firm’s suitability for your startup and the value it can bring beyond funding. Consider factors such as their expertise, track record, and network to determine if they are the right fit.
Conduct due diligence
Conduct due diligence on each VC firm. Find out which fund the investment will come from and the current status of that fund. Investigate how investment decisions are made and connect with founders or startups the firm has previously backed to ask questions.
Once you’ve identified firms that align with your goals, move on to the next step.
Reach out and pitch
Decide how you’ll reach out to the VC firms. Some founders prefer warm introductions by building relationships first or leveraging someone connected to the firm. Others choose to send cold emails or apply directly if the firm has an open application process.
Prepare a compelling pitch and other required materials to make a strong impression. Be ready to address any questions or objections the VCs may have.
Negotiate and close the deal
It’s time to negotiate and close the deal after selecting the right VC firm and going through their evaluation or interview stages. Work closely with your lawyer to carefully review and negotiate the terms of the investment to ensure they align with your startup’s goals and expectations. Key finalizing points include valuation, equity stake, exit strategy, and how the funding will be received.
Once the agreement is signed, the deal is officially closed, and you’ll receive the funding.
Challenges Nigerian startups face in securing venture capital
Despite recent growth, 51% of startups in Nigeria still struggle to secure funding. Many startups also rely on angel investors, debt financing, and grants to stay afloat.
- Limited investor access: Most founders struggle to connect with investors or find opportunities tailored to their startup.
- Rigorous selection process: The high volume of applications makes the funding and selection process extremely competitive.
- Currency volatility: fluctuating currency values can negatively impact the funding a startup receives.
- Regulatory barriers: Founders encounter complex regulations, especially in industries like fintech. Frequent changes in regulatory policies add to the challenge.
- Unfavorable business environment: Policies that don’t support startups can hinder growth.
However, in 2022, Nigeria’s former President, Muhammadu Buhari, signed the Startup Act into law, and some states have started domesticating it. This Act aims to create an environment where you can attract investments, enjoy tax breaks, and benefit from streamlined regulations.
FAQs on venture capital firms in Nigeria
How does venture capital work?
Venture capital works when investors, known as venture capitalists, provide funding to early or growth-stage startups in exchange for equity or ownership stakes. You pitch your business idea to VCs, who evaluate it. If they’re interested and both parties agree on terms, they fund your business, often in multiple rounds, as your company progresses through different growth stages.
What are the benefits and challenges of getting venture capital funds?
Venture capital offers you several benefits, including access to funding, expertise, and mentorship.
However, the process is competitive and can take time. You’ll have to give up a portion of ownership and control. There are also high expectations for growth and returns, which can create significant pressure.
Is venture capital right for my company?
To decide, evaluate your company’s growth stage, industry, and objectives. Venture capital is ideal for high-growth startups with innovative products or services targeting large markets. If your startup cannot deliver on the terms of the fund, you may consider other alternatives.
What is the role of venture capital firms in Nigeria?
These firms provide funding to startups when they lack the cash to build, grow, and scale. They also offer mentorship and networking opportunities to help them succeed.
How do VC firms choose which startups to invest in?
VC firms have criteria such as industry focus and geography. They look at your market potential, innovative solutions, team expertise, and scalability before deciding to invest.
What industries attract the most VC funding in Nigeria?
Typically, high-growth potential industries. Fintech, healthtech, agritech, e-commerce, and climate tech, among others, attract significant VC funding in Nigeria.
How can I secure funding from VC firms?
To secure funding, you need an innovative solution, strong market potential, and a compelling pitch that convinces VC firms to invest in your startup.
Conclusion
Venture capital plays an important role in driving innovation in Nigeria by providing startups with the funding they need. Across various industries, it has fueled the growth of startups and helped them thrive.
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. Before reaching out or closing a deal with a venture capital firm, you must do your due diligence and confirm they meet important criteria. Ensure a professional reviews the terms and conditions, equity stakes, and any other forms of returns. With the right venture capital partner, you can drive significant growth for your startup and scale your solution.
Disclaimer: This publication, review, or article (“Content”) is based on our independent evaluation and is subjective, reflecting our opinions, which may differ from others’ perspectives or experiences. We do not guarantee the accuracy or completeness of the content and disclaim responsibility for any errors or omissions it may contain.
The information provided is not investment advice and should not be treated as such, as products or services may change after publication. By engaging with our content, you acknowledge its subjective nature and agree not to hold us liable for any losses or damages arising from your reliance on the information provided. Always conduct your own research and consult professionals where necessary.
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