Nigeria Q1 2022 Venture Investment Report

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Venture Investment in Nigeria over Q1 2022 with startup, industry, investor, and Exit breakdown

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The Q1 2022 Nigeria Venture Report is one of MAGNiTT's flagship reports that provides a quarterly update on the venture capital and startup ecosystems in Nigeria benchmarked with its peer EVMs.

With capital investment surpassing peer Emerging Venture Markets like Kenya ($400M), the UAE ($297M), or KSA ($256M), Nigeria remains the most-funded in geography in Africa over the first quarter of the year. Observing an 84% QoQ growth in capital invested compared to Q1’21, the Nigeria VC ecosystem has already raised more than 38% of all capital invested over FY’21 albeit over 60% fewer deals. To this avail, while the highest concentration of deals recorded was in the less than $5M bracket, Nigeria’s top 5 funding rounds including a $250M Mega Round accounted for 87% of all funds raised in Q1 2022. 

While FinTech was the industry leader across most EVMs, the sector excelled in Nigeria raising more than 80% of all funds and closing 45% of total transactions recorded in the first quarter of the year. Nigeria also shows a promising proportion of both accelerated deals, accounting for 49% of all transactions in Q1’22, and international investor participation, accounting for 75% of all active investors backing Nigeria-based startups.
 

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Key Highlights - Nigeria Q1 2022 Venture Investment Report

  • $437M was raised in venture funding in Nigeria over the first quarter of the year; signifying a strong start for the ecosystem

  • 1 Mega Deal was recorded by Nigerian FinTech Flutterwave accounting for 70% of all capital invested in FinTech and 57% of total funding raised in Nigeria over Q1'22

  • Nigeria was the most-funded and most-transacting geography across Emerging Venture Markets accounting for 21% of all funding and 23% of total transactions in Q1'22

  • FinTech was able to raise 45% of total transactions and 83% of funding to rank first as the industry of choice for the Nigerian VC ecosystem while Transport & Logistics, Healthcare, and Enterprise Software remain top-contenders

  • 49% of all transactions in Q1 2022 were accelerated deals and 75% of all investors were international, indicating a healthy deal flow from early to late-stage transacting

What’s In The Report?

This quarterly report provides a comprehensive overview and a deep dive into the country's venture capital and funding investment space and includes the following: 

• A 5-year analysis of Nigeria venture funding evolution, with a focus on 2022 YTD country and industry performance benchmarks

• Top 10 investor ranking, together with the business type and HQ analysis of all investment firms in the region

• Top 10 startup funding rounds that were closed during the analyzed period, as well as the ticket size split of the entire deal flow

• A 5-year Pakistan exit evolution with country benchmark breakdown

• Top 10 last exits by Nigeria-based startups

Who will benefit from the report?

The Nigeria Venture Investment Report is ideal for investors tracking startup activity, consultants looking to identify technology innovation trends, as well as government entities searching for investments.

This report was created with data from MAGNiTT, a comprehensive directory of technology innovation trends. The platform provides the following analytics tools:

• Investment directories, a comprehensive list of all startup venture funding across the Middle East, North Africa, Pakistan, and Turkey

• Market Sizing Tools to visualize investment growth and trends across industries, geographies, and stage

• Startup Resources including a deal flow tool for applications to leading Venture Capitalists for investment

• Exit comparisons, looking at Mergers & Acquisitions from across the region

 

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*This report aggregates and analyses tech startup investments in 17 countries in the Middle East and North Africa - listed alphabetically: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia (KSA), Syria, Tunisia, United Arab Emirates (UAE), and Yemen.

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