Nigeria FinTech Landscape - Impact Assessment
Nigeria FinTech Landscape - Funding
Funding is concentrated on later stage investments and there is a perceived gap in
pre-seed funding partly due to limited local participation
For deals >$1mn, funding split by stage in Nigeria mirrors global
average...
Global Funding Pools by stage
USD billions
Late stage
Early stage
Nigeria Funding Pools
by stage
USD billions
However, there is a perceived gap in pre-seed funding (<$1mn) partly
driven by limited local participation
Issues highlighted by FinTech and investors
Gap in pre-seed funding
"Funding to the industry has improved
but it is still difficult for entrepreneurs to
raise pre-seed capital of $50-$100k"
"People are asking for
unreasonable equity up to
30% for pre-seed rounds"
FinTech founder
26
36
0.46
FinTech founder
18%
24%
24%
Limited local participation
"Nigerian investors don't yet understand
the venture asset class"
"Less than 5% of investments
are from local sources"
Local VC
FinTech founder
76%
82%
76%
2017
SOURCE: Dealroom, McKinsey Panorama
2019
2019
Limited support system for early stage FinTech
"Many FinTech founders locally are not
prepared upfront for the requirements of
fundraising"
FinTech leader
"There are very few technology
lawyers or support structure for
entrepreneurs here"
45
Local VC
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