Softbank, Tiger Global, 3 other Global Investors Behind Million Dollars Deals for Nigerian Startups in 2021
- This year, 2021 is a great year for Nigerian start-ups, thanks to innovative solutions from the fintech companies
- As at Wednesday, December 1, over N578.39 billion($1.41bn) deals have been clinched by Nigerian companies
- The amount raised by Nigerian youth-led businesses is a record high, surpassing South Africa, Kenya, and Ghana
In a bid to leverage the huge potentials in Nigeria’s tech sector, five global investors in 2021 have funded innovative ideas in Nigerian startups to the tune of over N500 billion
Tiger Global, SoftBank, Valar Ventures, Target Global, and Avenir Growth, as well as other investors, have contributed a major amount of the $850 million raised by Nigerian startup.
These investments in Nigerian companies are motivated by a desire to deploy resources, a growth of fintech services across Africa, and the numerous opportunities available in the industry, among other factors.
Source: Getty Images
These are the top five of the highest investors for 2021
SoftBank
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The majority of the company's investments are in the technology, energy, and finance industries.
The organization led an Africa-focused fintech business, OPay, to secure $400 million in additional capital in August, as a first-time investor in Africa. The fund's first investment in an African startup was made in this round.
The firm also led a $200 million Series E financing for Andela, an African business with operations in Nigeria, Ghana, and Kenya, in September, making both startups unicorns.
Tiger Global
The American hedge fund began investing in public and private firms in the worldwide Internet, software, consumer, and financial technology industries in March 2001.
This year, the business has co-led investment rounds for many companies, including Fairmoney, a Nigerian credit-led neobank, which secured $42 million in a Series B round in July and $170 million in a Series C round in March.
Tiger Global, which was founded by Chase Coleman in 2003, has invested in over 100 firms in over 30 countries, with investments ranging from Series A to pre-initial public offering (IPO), and has won bets on companies such as Facebook and LinkedIn.
Avenir Growth Capital
Avenir Growth Capital is a New York-based private equity firm that was created in 2017 with the goal of investing in future-focused growth equity firms that support category-defining technology and technology-enabled businesses.
Flutterwave raised $170 million in a Series C investment headed by a New York-based private equity group in March.
Valar Ventures
Valar Ventures is a venture capital firm that invests in high-margin, fast-growing technology startups that are seeking massive market opportunities.
The company began investing in African companies in March, when Nigerian Kuda Bank led a $25 million Series A round in the fintech company and was a co-lead in a $55 million Series B round in August.
Valar Ventures, which was launched in 2010 by Andrew McCormac and includes James Fitzgerald and Peter Thiel among its founding partners, has assisted Kuda Bank in raising $80 million in two stages.
Target Global
Alex Frolov's Berlin-based venture capital business has invested 70% of its assets in European startups, 20% in Israeli firms, and the other 10% in rising African startups.
The firm invests in seed rounds, late-stage companies, and early-stage companies.
Nigerian Kuda Bank, a first-time investor in Africa, is one of these promising firms, having received lead investment from Target Global in one of its past three rounds and co-led funding in two others this year.
In March 2021, a $25 million Series A round will be held, followed by a $55 million Series B round in August.
Startups in Nigeria raise over N123.4billion in six month
Legit.ng had earlier reported that Nigeria was the second African country on the highest startup fundraising list, falling behind South Africa, as they both raised over N123.4 billion funds in the first six months of 2021.
Flutterwave raised the highest capital among its peers in Nigeria, where the likes of Kwik Delivery, Kuda, Appzone, Termini, and Bankly operate received significant investment.
Startups owned by men still recorded the highest investment compared to women-owned businesses, but female entrepreneurs saw a surge in funding.
Source: Legit.ng
