Nigeria Leads Africa Tech Startup Funding With Fintech Dominant
The Startup-focused research company has built up a significant portfolio of publications, most notably the African Tech Startups Funding Report and Finnovating for Africa, available free for all via open-sourcing initiatives with various partners across the continent’s tech ecosystem.
Nigeria leads the way for tech startup funding on the African continent over the last eight years, with fintech companies the main driver. That is according to the Nigerian Startup Ecosystem Report 2022, released by startup-focused news and research company Disrupt Africa.
Since launching its research arm in 2016, Disrupt Africa has built up a significant portfolio of publications, most notably the African Tech Startups Funding Report and Finnovating for Africa, available free for all via open-sourcing initiatives with various partners across the continent’s tech ecosystem.
The Nigerian Startup Ecosystem Report 2022 from Disrupt Africa dives into the local ecosystem by analysing active startups, local support networks, and funding and exit activity over the last 7.5 years
The Nigerian Startup Ecosystem Report 2022, its 18th publication and third country-focused report, utilises Disrupt Africa’s datasets, expertise and networks to document what startups are doing what in the country, who is making investments, and who is providing ecosystem support. It also includes the full list of startups tracked for the purposes of the report.
It is released in partnership with Quona Capital, a venture firm focused on fintech that can expand access for underserved customers and small businesses in emerging markets; Sabi, Africa’s leading provider of commercial infrastructure for the distribution of goods and services; and MAX, which is building Africa’s largest mobility-tech platform. Other partners are Talking Drum Communications, Newtown Partners, Kwik, and LipaLater.
According to Disrupt Africa, the publication takes as its starting point a list of 481 Nigerian tech startups for which enough data was available. Lagos is the leading hub for Nigerian tech, with 88.4 per cent of the startups tracked by this report based out of the city, while fintech is the leading sub-sector, with 173 (36%) of the startups active in this space.
Nigeria is the most popular investment destination on the continent, according to the publication. Between January 2015 and August 2022, 383 tech startups raised a combined US$2,068,709,445 – a higher total than any other country. Nigeria’s dominance is only getting greater in this regard. So far in 2022, 107 Nigerian startups have raised funding, accounting for around one third of the continent’s funded startups so far this year. The country’s running tally for 2022 stands at US$747,908,000 – closing in last year’s total of US$793,790,000.
According to the report, only 75 (15.6%) of Nigerian tech startups have at least one female founder, and just short of half have taken place in some form of accelerator or incubator programme. The 481 startups tracked here employ between them just short of 20,000 people.
Gabriella Mulligan, Co-founder of Disrupt Africa said: “Nigeria has long been a pioneering startup ecosystem on the African continent, leading the way in various sectors and increasingly becoming a focus for investment. It is high time we dug deeper into its growth, and this report does just that. We hope it serves as a valuable resource for both those already active in Nigeria and those looking to start doing business there soon.”
Tom Jackson, Co-founder of Disrupt Africa stated: “It is core to our identity as a company that we offer entrepreneurs – both active and aspiring – access to pivotal information, resources and opportunities with which to take their businesses to scale. The democratisation of data, and the release of detailed industry reports free of charge, is central to that, and with that in mind we hugely appreciate the assistance of all our partners, who are doing their bit to ensure this report reaches as many people as possible.”
The Nigerian Startup Ecosystem Report 2022 is available to all for free, making the data and analysis contained in its pages accessible to those for whom the information is most valuable – entrepreneurs.
The publication, which is the 18th released by Disrupt Research, is over 50 pages in length and provides a detailed overview of the Nigerian startup ecosystem and its development over the last 5-10 years. It involves analysis as to what areas startups are active in, a detailed look at funding and M&A trends, and detail the range of startup support services available to Nigerian entrepreneurs, including hubs, incubators, accelerators, and government, corporate and university initiatives.