In exciting news for Nigeria’s tech scene, two fintech startups, Cleva and Miden, have earned a coveted spot in the latest batch of startups at Y Combinator, a top-notch accelerator based in Silicon Valley.
Y Combinator, known for nurturing early-stage companies like Airbnb, Coinbase, and Dropbox, launched its W24 batch in January. Among the 137 startups accepted so far, two hail from Africa, both from Nigeria.
Cleva, established in 2023, is on a mission to make USD banking accessible for emerging markets. Their platform allows users to receive payments from clients, employers, and investors worldwide directly into their Cleva digital accounts.
In January, Cleva announced securing a US$1.5 million pre-seed funding round, with support from Y Combinator, 1984 Ventures, The Raba Partnership, Byld Ventures, FirstCheck Africa, and various angel investors.
The other standout startup, Miden, founded in 2022, enables businesses to issue virtual cards to customers through its API, simplifying the provision of financial products.
Y Combinator’s interest in African startups has fluctuated since its W22 batch, which welcomed 24 African startups. However, the numbers have dwindled since then, with only seven in S22, three in W23, and three in S23.
The accelerator boasts an impressive alumni network, including African giants like Flutterwave, Paystack, and Kobo360, alongside rising stars like Cowrywise, MarketForce, and Kudi.
Despite its somewhat ambiguous role in Africa’s startup ecosystem, Y Combinator is widely praised by entrepreneurs for its positive impact on their ventures.
In 2022, Y Combinator upped its standard deal size to US$500,000, a sum now accessible to Cleva and Miden.
Previously, startups received US$125,000 for seven percent equity, but under the new standard deal, Y Combinator also invests an additional US$375,000 on an uncapped SAFE basis with “Most Favoured Nation” (MFN) terms.
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