Here is the List of Our Top 5 Nigerian Venture Capital Firms for 2018

Venture capital firms are investment companies. But unlike many types of investment companies, they specialize in funding new companies, entrepreneurs and disruptive businesses.

Owing to the risk inherent in this sort of investment, they typically receive a significant share of equity in a company as a result.

When the company is mature, VC capital firms typically exit the company in one of two ways. First is usually by selling off their shares via an IPO. And second is by supporting the sale of the company to a larger one.

VC firms are great and help to spur tech innovations. Every huge Silicon Valley company received venture capital funding at one point or the other. From Microsoft, Apple, Facebook, Twitter, Instagram, even SnapChat, received VC funding.

In Nigeria, VC firms are really just taking off. Over the last few years, several VC firms have popped out and are identifying innovation from different directions.

In 2018, many Nigerian VC firms have made several investments across the country. But you can only identify a top VC firm by the funding amount and the number of startups in its portfolio.

So without further ado, here are the top Nigerian VC firms of 2018

Microtraction

Microtraction is a relatively young VC firm established by Yele Badamosi in 2017. Microtraction provides funding of between $25,000 and $75,000 to startups. Since it launched, Microtraction has subtly invested in Fintech startups operating in several variants.

The firm has garnered seven startups under its portfolio in just 12 months. They include Bitkoin Africa, Allpro, Accounteer, CowryWise, Wallet.ng and Thank U Cash.

CCHub’s Growth Capital

Founded by premier Nigerian tech incubator, CCHub, the Growth Capital is a social innovation fund. It is the only venture fund which has its funds domiciled within Nigeria. It has over N250 million in its purse for Nigerian startups.

It currently has seven companies in its portfolio, including LifeBank and Riby Finance. It’s most recent investment was in Edves an edtech.

Venture Garden

Lagos based Venture Garden is another hugely important startup that shined in 2018. The firm launched its own tech hub in Ikeja, Lagos, called Vibranium Garden.

Its portfolio is also richly diversified and includes Flutterwave which has raised over $20 million from investors so far. SureRemit which held a successful $7 million initial coin offering in January is also a portfolio company.

TLcom Capital

TLcom Capital has operations in Nigeria, Kenya and London. Over the last few years, the company has made significant investments in African startups.

In Nigeria, the firm has invested in some big names. In 2017, it participated in Andela’s $40million round alongside Facebook’s Mark Zuckerberg. And in 2018, it was lead investor in Terragon Group’s $5 million round.

Echo VC

Echo VC is another huge Nigerian VC firm. Initially one of the earliest VC firms around, it has links to some of the biggest funds and investment networks in Africa, including the IFC and the African Business Angel Network.

The company has invested in notable startups like LifeBank, Hotels.ng, Printivo and Cellulant. It most recently led a $2.5m round in Kenya’s Kukua edtech startup.

Who have missed out?!