While most Nigerian tech startups launched in 2019, they have attracted over $2.7 billion in 2021 & 2022 combined. A reflection of the positive global attention Nigeria’s tech sector has enjoyed and the stellar startups she has produced over the years.
With more tech startups joining the bandwagon every now and then, the growth projection for this year is expected to be positive. Fingers crossed.
Nigeria like many other underdeveloped African countries tends to have a lot of opportunities masked as problems. This underdevelopment interestingly accounts for the many potentials tech startups are trying to realise. One instance is the country’s underdeveloped financial sector which has attracted a lot of tech startups.
These fintech startups dominate the startup ecosystem in Nigeria and Africa with a 42% share of deals in Q2 2023. Unicorns like Flutterwave and Paystack have flourished from the gains of optimising online transactions.
Having given Nigeria’s tech startup industry its clearly deserved praise. If you are a business owner, or an individual looking to break into tech either as an employee or an investor or maybe to even start a tech company, it will be a great disservice to yourself not to pay attention to the Nigerian tech startup world.
Why Should You Pay Attention To Nigerian Tech Startups?
1. Business-to-Business Opportunities
Startups are breeding grounds for new possibilities not just for the startup and its stakeholders but for other businesses that offer solutions the startup needs. Smart B2B marketers and entrepreneurs know this, so they look forward to cold pitching to startups who fall under their target radar. They know that creating business bonds with Startups could lead to profitable long-term partnerships that could revolutionise their business. This also highlights a good reason to pitch the most likely-to-succeed startup as a way of optimising your own business success.
2. Competitive Advantage
In business, offering products or services that ‘outvalue’ your competitors requires your awareness of their activities. Tech startups are innovators, that is, they have found a better way of solving a problem that is being underserved.
Keeping your eyes on tech startups can safeguard your business from being abruptly displaced by innovative tech startups that might have discovered insights you lack. Old tech companies like Nokia might have suffered from not staying ahead of the curve by matching the value startups were bringing into the smartphone industry.
3. Investment Opportunities
If you have loads of idle funds and seek investment opportunities, then pay rapt attention to tech startups in Nigeria. Funds are food for startups. That’s how they grow. Hence, their receptiveness to investments that can help them scale. You will be amazed by the number of startups looking for funding. Of course, every investment is a risk but with proper diligence, advisory and good luck on your side, you can become a shareholder with a potential unicorn.
4. Employment Opportunities
Startups as the name implies are just starting and most of their growth is ahead of them. They tend to have more room for prospective tech bros and tech sis than established companies. Startup growth requires hands on deck and as the growth materialises, the need for more hands will arise to maintain growth.
Individuals seeking to earn a living in tech will be smart to target tech startups in Nigeria. On the other hand, the receptiveness of tech startups to onboarding new employees and interns should be met with readiness on the part of Job seekers. Have a list of targeted tech startups of a particular niche, hone your skills and prepare a value proposition for your target startup.
5. Learn Startup Processes
Tech news updates are largely about the progress or pitfalls of tech startups, startup accelerator programs and startup competitions. This is an avenue for prospective startup founders to learn the nuances of building a tech company. Like how to develop an idea, raise funds through VCs and build teams & partnerships that accelerate startup growth. Paying attention to existing startups might even save you from building irrelevant products.
Enjoy Startup Stories
Since startup stories are real-life stories, they are usually not short of drama and even scandals to analyse and debate about. Some startup stories will inspire you while some might leave you dumbfounded. While you learn from tech startups in Nigeria be sure to enjoy it.