Nigeria startup ecosystem overview

VC4A research on 3,360 ventures registered in the country shows a clear relationship between venture performance and the support these ventures receive from the Nigerian startup ecosystem. For example, companies participating in ecosystem support programs are 23% more successful in securing investment, and are more likely to be generating new jobs.

More specifically, 76% of the Nigerian ventures are creating jobs with an average of 8.5 FTE per venture. When taking a further look at the jobs created per age group, 56% of the employees hired are between 12 and 35 years. This is a considerable contribution to the country given its growing population and justifies further investment in the growth and development of the startup ecosystem and the entrepreneurs it supports.

Another indicator of progress is the growth in average investments secured by Nigerian ventures compared to last year’s study. This year an average amount of USD $93,651 is recorded which is 22% higher than the amount registered last year. This indicates that despite ecosystem challenges, the quality of the ventures from Nigeria continue to improve over time and results in higher valuations and larger fundraising rounds. Doubling down on this momentum, it is possible to secure a series of success stories that exemplify what is possible in the country’s fast growing markets.