• About
  • Advertise
  • Careers
  • Contact Us
Friday, June 27, 2025
  • Login
No Result
View All Result
NEWSLETTER
Tech | Business | Economy
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
    • Mobility
    • Environment
    • Travel
    • StartUPs
      • Chidiverse
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • EventDIARY
    • Editorial
    • Appointment
  • TECHECONOMY TV
  • Apply
  • TBS
  • BusinesSENSE For SMEs
  • Chidiverse
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
    • Mobility
    • Environment
    • Travel
    • StartUPs
      • Chidiverse
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • EventDIARY
    • Editorial
    • Appointment
  • TECHECONOMY TV
  • Apply
  • TBS
  • BusinesSENSE For SMEs
  • Chidiverse
No Result
View All Result
Tech | Business | Economy
No Result
View All Result
Home Business TE Insights

Bridging The Startup Funding Gap in Southern Nigeria: VC Compliance

by Joel Nwankwo
November 13, 2023
in TE Insights
0
VC
UBA
Advertisements

Although most acute at the late stage, every investment stage has seen significant contractions by both volume and value since H2 2022.

In the first two quarters of 2023, early-stage deals accounted for over 70% of VC deals in Africa’s tech startup funding space. This is not a recent trend. We are used to seeing this stage stand tall. What we are yet to come to terms with is seeing Southern Nigerian early-stage startups bagging VC deals.

Some weeks ago, Techeconomy reported how angel investors can help develop the emerging startup ecosystem in southern Nigeria. The report highlighted the sustained investor lag in the region and the pivotal role angels could play in it.

In this report, we shall highlight the need for VC deals in southern Nigeria and the investment potential from the south.

The VC Need

Since more investors and entrepreneurs have entered the market in recent years, Nigeria’s venture capital (VC) scene has expanded dramatically. Venture capital investments have surged since 2020, mostly due to a growth in funding for startups.

Among the leading venture capital firms in Nigeria are Ingressive Capital (IC), Greentree Investment Company, EchoVC Partners, Microtraction, Co-Creation Hub Nigeria, Alitheia, and Ventures Platform (VP). Unsurprisingly, they are all in Lagos.

There are several factors contributing to this funding gap, including lack of infrastructure, investor bias, and low investor awareness. Because of this, a lot of promising founders in Southern Nigeria have struggled to compete on a global level.

The lack of local VC firms remains a problem that has seen the South miss out on ecosystem rankings for categories that are critical to helping a startup thrive. This is despite its cost-effective economy and increasing tech talent.

Several innovators and creatives in southern Nigeria have been able to develop an MVP and prove their ideas, but they have still struggled to attract VC attention. In the end, they either moved to Lagos or shut down operations.

Regional Potentials

In southern Nigeria, the startup community emerged from several software-based training programs that developed in the last decade. The idea of startups has developed through ecosystem collaborations and bootstrapping.

A vibrant startup scene is emerging in the South. Startups and platforms such as Bellum, Dantown, Acecore, and several others have been able to develop thriving products and services. There is potential for startups given the size of the youth population and high growth.

A “promising startup landscape” with a large number of young, talented individuals interested in launching a business can be found in southern Nigeria. Even though they started from a small base, the number of tech startups has been growing quickly.

Although official statistics are unavailable, around one-third of all startups operate in the media advertising and fintech industries. Digital markets, development services, and e-commerce are other industries to watch out for.

Given the rise of startups in Southern Nigeria, some of the previously existing VC funds have to expand their targets to capture emerging markets. This is not a drill, the South holds enormous potential for VCs and startups.

 

Loading

Advertisements
MTN ADS

Author

  • Joel Nwankwo
    Joel Nwankwo

    Joel Nwankwo is a tech journalist. He is passionate about telling stories as it relates to Africa's social and financial tech advancements. You can reach him at joel.nwankwo@techeconomy.ng

    View all posts
0Shares
Joel Nwankwo

Joel Nwankwo

Joel Nwankwo is a tech journalist. He is passionate about telling stories as it relates to Africa's social and financial tech advancements. You can reach him at joel.nwankwo@techeconomy.ng

Next Post
BAMA Mayonnaise

BAMA Mayonnaise; Fueling Next-Gen Innovators, Changemakers through Investment in Education

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recommended

Monopoly in Nigeria telecoms market, NCC Directs Telcos to Address Subscribers' Data Depletion Concerns, tariffs, Nigeria’s mobile subscription base

Telecom Sector’s Survival Depends on Government Support, Experts Warn

1 year ago
mass transportation in Lagos

The Urgent Need for Mass Transportation 

9 months ago

Popular News

    Connect with us

    • About
    • Advertise
    • Careers
    • Contact Us

    © 2025 TECHECONOMY.

    No Result
    View All Result
    • News
    • Tech
      • DisruptiveTECH
      • ConsumerTech
      • How To
      • TechTAINMENT
    • Business
      • Telecoms
      • Mobility
      • Environment
      • Travel
      • StartUPs
        • Chidiverse
      • TE Insights
      • Security
    • Partners
    • Economy
      • Finance
      • Fintech
      • Digital Assets
      • Personal Finance
      • Insurance
    • Features
      • IndustryINFLUENCERS
      • Guest Writer
      • EventDIARY
      • Editorial
      • Appointment
    • TECHECONOMY TV
    • Apply
    • TBS
    • BusinesSENSE For SMEs

    © 2025 TECHECONOMY.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    Translate »
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.