Nigerian startups seek better access to investors as funding reaches $635 million

Nigerian startups are seeking improved access to investors as funding in the country's technology sector continues to grow, though the funds are still concentrated among a limited number of businesses. On October 27, 26 startups met with 16 venture capital investors in Lagos through the Investor Connection Drive organized by Magna Collective.

This event arranged 61 one-on-one meetings between founders and potential investors, using a speed-dating format to match startups with investors based on their investment priorities. The program aimed to connect founders with investors whose investment preferences aligned with their businesses, allowing founders to avoid cold introductions.

Despite the increase in funding, only 77 startups raised at least $100,000 from October 2025 to March 2026, with Moove's $250 million transaction accounting for nearly 40% of the total.

The Investor Connection Drive was supported by the UK-Nigeria Tech Hub, UK Government's Foreign, Commonwealth and Development Office, ONDI, and Magna Collective. The participating startups operate in various sectors including fintech, healthcare, AI, logistics, energy, agriculture, and education, with over two-thirds having women in leadership roles.

Google-backed startups, including those from Google for Startups Accelerator Africa, the Black Founders Fund, and the Google AI Fund, also participated. Femi Awoniyi, CEO of Magna Collective, emphasized that the initiative was meant to bridge the gap between Nigerian founders and potential investors. However, Nigerian startups still face challenges such as a lack of growth-stage financing, changing investor expectations, and shifting funding sources.