Capital investors

By Salisu Uba, PhD, FCIPS

In Nigeria, especially in the North, the time is ripe for successful entrepreneurs and business leaders to forge an alliance and spearhead investment in the burgeoning startup ecosystem. By forming angel syndicates to venture capitalists, we can create a robust foundation for attracting substantial investment not only from within Nigeria but also from across the globe. This aligns with locally supported startups through investment, addressing market fit and confidence in the business model, especially if the solution is locally targeted.

Why is this crucial?

Firstly, establishing angel syndicates allows us to tap into the wealth of knowledge and experience possessed by seasoned entrepreneurs. Imagine having a syndicate of angels across all states investing in and mentoring startups and small businesses; this could lead to more successful ventures, social impact, and job creation. Typically, when you have resources and skills in business, it becomes an avenue for addressing challenges and opportunities within the startup landscape, making it a source of invaluable mentorship for emerging businesses.

Secondly, starting with angel syndicates incentivizes the process of attracting more venture capitalists, signifying a maturation of the investment ecosystem. It’s important to understand that venture capitalists bring not only financial backing but also strategic guidance and access to extensive networks, propelling startups towards rapid growth and scalability.

I am glad that some folks are forming partnerships and have come up with venture labs funding. However, my question is how effective this is, especially when we don’t get updates about the deals they have closed? I want to be positive, as a typical round of investment can take anywhere from 3-7 months.

Furthermore, without adequate funding, promising startups risk stagnation or even relocation to more investment-friendly destinations. Incorporating in these alternative jurisdictions not only deprives Nigeria of potential economic growth from the ecosystem but also undermines the socio-economic development of the country offered by the startups.

Lastly, to catalyze this transformation, heightened awareness and targeted training programmes are essential for our successful entrepreneurs and business leaders. Educating successful entrepreneurs on the benefits and mechanisms of investing in the startup ecosystem will empower them to become active participants in driving innovation and economic prosperity.

Business schools in Nigeria should come up with tailored programmes on startup investment opportunities and the future of sustainable business practices. Our revenue houses should perhaps create incentives for high net-worth individuals when participating in investment in startups or small businesses.

I am absolutely certain that Nigerian entrepreneurs and business leaders should be engaged in creating a network of angel investors to invest in the startup ecosystem. We can foster a culture of innovation, drive economic growth, and position Nigeria as a leading player in the global startup landscape. Now is the time to act, to seize the opportunity, and to realize the full potential of Nigeria’s entrepreneurial spirit.

I am sure platforms like Startup Arewa, NITDA, Ministry of Finance, FIRS, and many other stakeholders can facilitate a dialogue and create a conversation around my proposition.

Salisu Uba, PhD, can be reached via salisuuba@ymail.com.