Most startups do not fail because they lack funding. They fail because they are not structured to receive it.
- Most startups do not fail because they lack funding.
- They fail because they are not structured to receive it.
- “For me and for the fact that I work with the government, it comes down to three things: relevance, resilience,...
- Managing it well is the real challenge.
Keep reading for the full breakdown on Business funding — everything you need to know is covered below.
That gap remains a major challenge in Nigeria’s startup ecosystem, where many promising ideas struggle to become investable businesses. Through her work at the Lagos State Employment Trust Fund, Omobolanle Akingbala sees firsthand what separates fundable startups from the rest.
What makes a startup fundable
Akingbala breaks it down into three critical questions founders must answer:
- Clarity: What problem are you solving?
- Alignment: Who is willing to pay for it?
- Execution: How does the intended capital accelerate your growth or achieve your goal?
“Overlooked ideas fall short not because they aren’t good, but because they aren’t well-structured.”
She says ideas worth funding must also reflect local realities while delivering measurable value.
“For me and for the fact that I work with the government, it comes down to three things: relevance, resilience, and returns. It needs to be solving a real, local problem, in tandem with the realities of this market/society and it has to deliver measurable value at scale.”
Why most partnerships fail
Beyond funding, she says execution and alignment determine success. Many collaborations fail because they rely on intent instead of structure.
“One simply cannot believe good intentions or ideas are enough to build strong partnerships, aligned incentives do. The collaborations that work are the ones where everyone knows their role, what success looks like, and what they each stand to gain or lose. We focus a lot on execution, timelines, metrics, accountability. At the end of the day, if you can’t measure a partnership, you can’t scale it.”
She adds that founders often overestimate capital and underestimate capacity.
“Raising money is not the finish line. Managing it well is the real challenge. Without structure, governance, and market access, capital can accelerate failure.”
Rethinking influence and opportunity
Akingbala says her understanding of influence has shifted from visibility to measurable impact.
“I used to think influence was about how many people you could reach. Now I see it as what you can activate. Did it lead to investment, jobs, or behaviour change? That’s the real measure.”
As a founding member and first woman president of DigiClan, she says communities play a major role in helping people access opportunities and grow.
“It taught me the value of peer support and collaboration. When people have access to the right networks, knowledge, and visibility, opportunities expand quickly. Leadership is less about directing people and more about creating platforms where others can succeed.”
Sectors still overlooked
She points to sectors still underfunded despite high-impact potential, including the informal economy, vocational and blue-collar ecosystems, climate adaptation at SME level, and local supply chain innovation.
“I’ll say the informal sector, for example there’s huge potential in helping small businesses digitize and scale. Blue-collar and vocational ecosystems are another big one, especially when it comes to job creation and job placements. And then there’s climate adaptation at the SME level, and local supply chain innovation; may not always look like traditional ‘tech,’ but their long-term value is significant.”
How LSETF deploys capital differently
At the Lagos State Employment Trust Fund, capital deployment goes beyond financial return.
“We’re focused on job creation, inclusion, and long-term economic impact. That means we do more than deploy capital. We support businesses with capacity building, market access, and partnerships, while also bringing stakeholders together to unlock opportunities at scale.”
The takeaway
Across funding, partnerships, and ecosystem building, the message is consistent: capital matters, but structure determines survival. The systems around an idea ultimately decide whether it scales or fails.