Nigerian startups must build networks, not just products — Kolapo Ogungbile

Nigeria’s startup ecosystem has matured significantly over the past decade by producing globally recognised companies, attracting billions of dollars in venture capital, and demonstrating how technology can solve critical challenges across sectors.

Yet according to Kolapo Ogungbile, partner at Heave Ventures, one challenge continues to hold many startups back which is distribution.

While speaking with BusinessDay on the evolving realities of startup growth, Ogungbile argued that building a strong product is no longer enough to guarantee success.

“Distribution has become the ultimate competitive advantage,” he said. “The startups that win are not always the ones with the best technology or the most innovative solutions.

“They are the ones that have mastered distribution, built strategic relationships, and gained access to customers, capital, and markets at scale.”

His comments come as African startups recorded one of their strongest funding quarters in recent years, raising more than $700 million in the first quarter of 2026.

While capital continues to flow into the continent’s technology ecosystem, Ogungbile believes founders must shift their focus from simply building products to building channels that can scale those products.

“The challenge is no longer product development,” he explained. “The challenge is distribution. How do you get your product in front of more customers? How do you access new markets? How do you build investor relationships that unlock growth capital? How do you create partnerships that accelerate scale?”

Drawing from Heave Ventures’ experience working with founders across Nigeria, Ogungbile said investor preferences are changing.

“One pattern is becoming increasingly clear,” he noted. “The startups attracting the strongest investor interest are not necessarily those with the most sophisticated products. They are the startups that have built strong distribution networks beyond their immediate markets.”

According to him, investors recognise that technology advantages can be temporary, while distribution advantages are often much harder to replicate.

“Products can be copied, but distribution is much harder to replicate,” he said.

As fundraising conditions become more competitive globally, Ogungbile believes founders must adopt a broader perspective that extends beyond local execution.

“They need to build distribution channels across markets, cultivate relationships with global investors, establish commercial partnerships, and position themselves within international innovation ecosystems,” he said.

He added that one opportunity that remains largely underexplored by African founders is Europe.

“In my view, Europe remains one of the most underutilized distribution opportunities for African startups,” Ogungbile said. “While many entrepreneurs focus almost exclusively on the United States, Europe offers access to capital, customers, corporate partners, and innovation networks that can significantly expand a startup’s distribution reach.”

For founders, he said engagement with European ecosystems should not be viewed solely through the lens of fundraising.

“It is about building distribution. It is about accessing new customers, entering new markets, securing strategic partnerships, and creating pathways for sustainable growth,” he noted.

Ogungbile also highlighted the growing importance of trust and relationships in startup fundraising.

“Fundraising itself has become a distribution challenge,” he explained. “Investors increasingly back founders they know, trust, and have followed over time. Capital flows through networks. Opportunities flow through relationships. Distribution of trust often matters as much as distribution of products.”

He argued that reality makes participation in international innovation events a strategic necessity rather than an optional expense.

Looking ahead, Ogungbile pointed to Slush 2026, the globally renowned startup gathering scheduled to take place in Helsinki, Finland, in November.

“Platforms like Slush are no longer simply conferences for founders,” he said. “They are distribution platforms. They provide access to investors, markets, partnerships, and global innovation networks.”

The event is expected to bring together thousands of founders, investors, corporate executives, and ecosystem leaders from around the world.

Recognising the opportunity, Heave Ventures is organising a Nigeria Founder Delegation to Slush 2026 to help selected Nigerian startups engage directly with European investors, partners, and ecosystem stakeholders.

“The objective is simple,” Ogungbile said. “Help ambitious Nigerian startups build the distribution networks required to scale globally.”

He believes the next stage of Africa’s innovation journey will depend not only on the continent’s ability to generate ideas but also on its ability to connect those ideas to global markets.

“Africa has already demonstrated its ability to produce world-class entrepreneurs,” he said. “The next challenge is distribution. How do we connect African innovation to global customers? How do we connect founders to investors? How do we connect startups to strategic partners and international markets?”

With more than 12,000 attendees, approximately 25,000 meetings, and investors representing an estimated €4 trillion in assets under management expected at Slush, Ogungbile sees such platforms as gateways to global growth.

“The future of innovation will not be determined solely by the quality of ideas we produce,” he noted. “It will be determined by our ability to build distribution around those ideas.”

For ambitious Nigerian startups, global growth is no longer simply about building a better product. It is about building better distribution, he said, adding that in today’s startup economy, distribution is king.