Funding to Nigerian tech startups in Q2 outpaces Q1 by 800%

Nigerian tech startups received financial investments in excess of 800 percent in the second quarter (Q2) of 2018 compared with first quarter (Q1).

Nigerian Startup Funding Report compiled by Techpoint and received by BusinessDay showed that while the number of companies that got funding went up by 27, the total value of funding was at $73,685,003 from 21 deals.

Two-thirds of the total funding worth 98 percent in value came from foreign investors. Local investors funded less than eight deals.

Financial services remained the most attractive for investors as startups in the segment brought in 75 percent of the total funding in value for the quarter.

Startups got the most funding deals from grants, however one Series C funding round worth $47,500,000 represents 64 percent of the total funding in value. The total value of Series A funding round at $13,500,000 for the quarter is higher than the entire funding in Q1.

Pre-seed, seed funding and equity investment brought in $10,271,143, $1,150,000 and $50,000 respectively.

The month of May saw the biggest funding deals including Cellulant’s $47,500,000; O-Mobile Multimedia Limited ($10,000,000); and Lidya ($6,900,000).

Source: Business Day

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