Lagos Startups Secure $820m Early-Stage Funding, Highest in Sub-Saharan Africa
- Startups in Lagos got the highest money in the Sub-Saharan region of the African startup ecosystem
- All the startups lucky to get funding, in total, are valued at $8.4 billion
- Meanwhile, venture capital (VC) funding in the region decreased by 6%
A report by Startup Genome has shown that early-stage financing of startups in Lagos was about $820 million, the most in the Sub-Saharan African startup ecosystem.
The figure was arrived at by calculating the value of exits and startup valuation from the second quarter of 2020 to 2022
Legit.ng earlier identified about 10 Nigerian startups selected among the 40 technology firms listed for the $4 million Black Founders Fund by Google. The list was drawn from Europe and Africa, with Nigerian startups dominating.
Source: Getty Images
The report by the policy and advisory research firm also revealed that the Lagos startup ecosystem was valued at $8.4 billion, making the state the regional leader in the Sub-Saharan startup ecosystem in terms of the ecosystem's value and the amount of funding raised.
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Lagos takes the lead
According to the report, Nairobi and Cape Town, with total startup valuations of $7 billion and $3 billion, respectively, were Lagos' closest competitors. The state's placement in the world's top emerging startup environment was between 51 and 60.
Regarding cash raised, it also discovered that OPay's $400 million Series C financing in August 2021 was the biggest deal in the sector, while Flutterwave's $250 million Series D financing in February 2022 lifted the company's valuation to about $3 billion.
The report's findings also indicate that from 2021 to 2022, venture capital (VC) funding in the area decreased by 6%. Fintech accounted for 41% of all startup deals in the region between 2018 and 2022, making it the top-performing technology sector in the area. According to reports, Nairobi is the largest fintech hub in the area.
The survey states that over 400 tech firms, or 88% of all tech startups in Nigeria, are located in Lagos. It also notes that the fintech industry dominates the Lagos tech ecosystem, accounting for 49% of all tech companies.
Flutterwave, other tech startup companies that struck biggest deal in 2022
In related news, Legit.ng showed that based on data, 27.4% ($967.2 million) of the $3.6 billion in venture capital raised by African entrepreneurs in 2022 was invested in Nigerian startups.
Flutterwave, Interswitch, Moore, TeamApt, and Ventures Platform are some Nigerian businesses with the biggest financing tickets.
Flutterwave, a finance unicorn from Nigeria that raised over $250 million in 2022, was top.
Source: Legit.ng
