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60% of funding to Nigerian startups from US — Consul General

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Over 60 per cent of venture capital funding for Nigerian startups comes from the United States, Consul General Will Stevens has disclosed.

According to him, 80 per cent of Nigerian startups are incorporated in the US.

The Consul General stated these in his keynote address at the Global Tech Africa Conference held in Lagos on Friday.

He said, “US venture capital firms are investing heavily in African tech startups with over 60 and 40 per cent of venture capital funding in Nigeria and Africa respectively coming from the United States.

“Up to 60 per cent of African startups are incorporated in the United States – this figure is 80 per cent when considering Nigeria alone. In 2021, African startups raised $4.8bn, this translates to an average of over $1m every 2 hours.

“The United States accounted for over 40 per cent of Africa’s VC funding in 2022 with over $2 billion injected into local startups.”

He noted that while there has been a decline in VC funding this year, US investors like Techstars, Y-Combinator, and 500 have closed over 100 major deals within the first nine months of the year.

He highlighted that the numbers indicate that the US has a strong interest in supporting the growth of the digital economies of the continent and Nigeria.

Stevens added, “As a whole, the U.S.-Africa startup/venture capital scene continues to be an immensely important mutually-beneficial bilateral corridor. At the Consulate here in Lagos, we work with numerous startups to facilitate their participation in incubator and accelerator programs, thereby connecting these Nigerian startups with global markets.”

He further declared that US investors see the potential for high returns as African startups are growing rapidly with many of them disrupting traditional industries. He stressed that Nigeria is reshaping the future of technology in Africa.

He affirmed that a digital transformation is underway in Africa, and the Digital Transformation with Africa initiative will facilitate more than $450m in financing to develop an inclusive and resilient digital ecosystem in Africa.

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