Venture Capital (VC) is one of the financing options open to privately held startup companies and small businesses. it is a type of private equity provided by VC firms interested in investing in startups with high growth potential in exchange for equity.
According to recent studies, Nigeria has increasingly attracted venture capital investments within the period of 2012-2019, Nigeria accounted for 73 percent of the US$10.7 billion value of private equity funding in the West African region.
According to Partech venture, a global investment platform for tech and digital companies in 2017 reported that $560 million was invested into African market. South Africa, Kenya and Nigeria took the lion share of the investments within the continent with 30, 25, and 20 percent respectively. In its 2018 tech startup funding report, it recorded that 210 African tech startups secured $334.5 million worth of investments. This time, Nigeria emerged as the premier investment destination on the African continent with South Africa and Kenya falling behind.
According to WeeTracker, in 2019, African startups attracted a record high of $1.34 billion In venture capital fund with Nigeria leading the investment pack by $663.24 million (about 50 percent) followed by Kenya and South Africa.
Venture Capital certainly holds the potential to drive economic development in Africa, particularly in Nigeria. it also provides not only financing but mentorship, strategic guidance, network access, and other forms of success driven support.
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