Despite the COVID-19 outbreak that has obstructed the global economy, Nigeria’s start-ups attracted over $126million investment deals in the first nine months in 2020.
Experts in the country’s start-up ecosystem say it is an indication that entrepreneurship is gaining momentum in the country.
A recent venture capital data compilation by Startuplist Africa – a data-driven platform that focuses on African start-ups shows that start-ups in the financial services industry accounted for the largest investment deals of the total investments for the period.
The financial services industry attracted $46million (38percent) in investments for the period. This was followed by start-ups in the crypto industry with $17million investment deals, biotechnology with $15million, healthcare with $11million, e-commerce with $10million, and renewable with $7million while others account for the remaining.
“Start-ups in Nigeria have created thousands of jobs and activities within the ecosystem and this is striving to consolidate the nation’s status as a top-notch international hub by attracting investors and stimulate entrepreneurship in the country,” Oo Nwoye, executive director, Tech Circle says.
Nwoye says that Nigeria is transitioning into a dynamic ecosystem offering start-ups a platform to potentially grow into million-dollar businesses.
“Last year, tech companies such as Paystack and FlutterWave received huge funding from abroad to strengthen their mobile payment solutions,” he says.
Uche Aniche, the convener of StartupSouth, believes that the Nigerian ecosystem has undergone a transformation in recent years.
“Thanks to the wave of fresh young talents. Lots of start-ups and small businesses have taken off, creating a surge of co-working spaces and a collaborative spirit that is vital for the success of innovation hubs,” Aniche says.
He says investments in Nigerian companies have grown steadily over the past year, pointing to a relative improvement of the investment in the ecosystem and a huge amount of money available to invest in start-ups.
The COVID-19 pandemic has infected over 30million people and claimed 952,033 lives globally since the first outbreak was recorded in Wuhan, China in January 2020.