it’s no coincidence gaming-updates embraced more African startups last year than any other period in our history. Many of these companies are Nigerian, and when we look at the venture capital data, we understand why. More than $1.8 billion in the country, or 34% of the $5 billion raised across the continent, had an incredible 2021, according to Partech, the pan-African venture capital firm that oversees investments, as Africa has the most active venture capital scene.
Over the past three years, the country has made steady progress as Africa’s leading start-up market. Startups in Nigeria raised $747 million in 2019, or 37% of Africa’s total venture capital investment.The following year, that figure dropped to $307 million, or 21% of the continent’s total, even though 2020 was a year of venture capital heavily influenced by outside forces.
Thanks to a global venture capital boom last year, Nigeria became the first African country to Hand He boasts that mega-investors like Tiger Global and SoftBank are choosing him after breaking the billion dollar mark.
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Despite the widespread optimism in Nigeria’s tech community and the belief that better days are yet to come, it’s no surprise that Issues related to investor caution and the valuation of some of the country’s startups are surprising.
In terms of valuations, no early-stage company in the country can boast a higher price tag than Y Combinator Club. Yesterday, the accelerator released the first batch of startups with updated conditions. YC’s new “standard deal” now offers more capital, and prices for Y Combinator alumni are reportedly higher than ever. (Note that only 10% of the current batch of Y Combinator had monthly sales in excess of $50,000 when they were accepted into the program.)
In addition to income restrictions, the accelerator shared another interesting statistic related to Nigeria. With 18 startups, it is the first African country to have the third largest representation by country. Yes, this is an important milestone for Nigeria, but it is also a testament to how fast the African startup scene has evolved in a short period of time.