In a nutshell, a venture capitalist (also known as a VC) is an investor who provides funding to startups or supports a growing startup during its expansion phase. Now, it is important to note that VCs are not charity organizations; they are investors. As such, they only invest in ventures that will earn them massive returns, assuming the venture turns out successful. The activities of VCs in Nigeria are not widespread. If you are a startup, especially in the tech space, here are four (4) VCs you may want to know about:
Omidyar Network – This is part of the Omidyar Group with interests in Consumer Internet and Mobile, Education, Financial Inclusion, Governance & Civil Engagement as well asProperty Rights. They have invested in BudgIT, Co-Creation Hub, and co-invested in Hotels.ng.
Venture Garden Group – This is a sector-focused holding company for a group of financial technology entities. Based in Lagos, VGG has invested in startups that develop automated data collection and management, automated billing and payment processing, e-invoicing, and education, particularly in Africa. For example, CashEnvoy, and Tutor.ng.
Adlevo Capital – This firm prides itself on being the first private equity firm focused on investments into technology-enabled companies across Sub-Saharan Africa. Based in Mauritius, Adlevo has invested in Interswitch, Paga, and mobile phone maker, SOLO.
EchoVC Partners – This is a seed and early stage VC with interest in Consumer Internet and Services, Mobile, Digital Media, Content and Advertising, E- and M-Commerce, and Enterprise Infrastructure. Based in Lagos and USA, they have invested in Hotels.ng and Printivo.
Before you approach any VC, it is in your best interest to know the investment areas that the VC is interested in. That way, you won’t end up wasting your time as well as that of the VCs . It would also save you the heartache that comes with the feeling that your idea is not good enough to secure funding. One sure way of getting the attention of a VC is through your pitch deck (slideshow presentation). Make sure you read my other article on what your pitch deck says about your business.
Till next time!