Aduna Capital, a venture capital fund, has unveiled a $20 million investment fund aimed at supporting early-stage and technology-enabled start-ups in Africa, with a particular focus on the underserved northern region of Nigeria. The initiative aligns with Aduna Capital’s commitment to empowering entrepreneurs in the burgeoning tech ecosystem.
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Untapped Potential in Northern Nigeria
The northern region of Nigeria, home to 128 million people, presents a vast and untapped market for technological innovation. According to a 2021 report by the National Bureau of Statistics, this population surpasses the combined market potential of Ghana and Kenya, emphasising the significant opportunity for growth. Aduna Capital‘s $20 million investment fund is strategically directed toward supporting start-ups in this region, with a keen emphasis on sectors like agriculture and education.
Supporting Start-ups for Sustainable Development
Research by the Northern Founders Community (NFC) in 2023 revealed that start-ups in agriculture and education in the northern region of Nigeria have each generated over $1.2 million in bootstrapped revenue. Aduna Capital aims to provide the necessary funding and support to enable these start-ups to scale significantly, contributing to sustainable development within the continent and globally. The initiative underscores the potential impact of technology on economic growth and job creation in the region.
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Focusing on Female-Led Start-ups and Pan-African Strategy
Surayyah Ahmad Sani, General Partner of Aduna Capital, emphasises the commitment to fostering female entrepreneurship. Citing a study by the European Investment Bank (EIB), she notes that female executives provided a return of $2 for every $1 invested in them. Aduna Capital plans to allocate 50% of its investments to female-led start-ups, tapping into the exceptional potential for returns. Additionally, Sanusi Ismaila, General Partner of Aduna Capital, outlines a pan-African strategy, allocating 25% of the fund to start-ups in the rest of Nigeria and another 25% to start-ups across Africa. The goal is to create a broad and strong portfolio, balancing profitable returns for investors with meaningful investments.
Surayyah Ahmad Sani, with her experience overseeing a $2 million investment for African start-ups in the angel and pre-seed stages, is poised to contribute valuable insights to the growth of the IT sector. Sanusi Ismaila, the founder of Colab, Kaduna State’s first innovation hub, brings a wealth of experience to the table. Colab, known for being the largest single source of technical talent in northern Nigeria, has produced alumni working for multinational firms such as Microsoft, Goldman Sachs, Paxful, and Andela.
The investment fund not only seeks profitable returns but also aims to catalyse growth in the African digital start-up industry. Sanusi Ismaila pledges to bring and share unique ideas and expertise to position Aduna Capital as a powerhouse in discovering, investing in, and fostering the next generation of tech titans across the continent. The overarching goal is to contribute to Africa’s rise as a significant player in the global digital economy.