REVEALED: 60% of Nigerian Startups are Funded by the US – Consul General

More than 60 per cent of venture capital funding for Nigerian startups originates from the United States, as revealed by Consul General Will Stevens.

According to him, 80 per cent of Nigerian startups are formally incorporated in the United States. These insights were shared during his keynote address at the Global Tech Africa Conference conducted in Lagos on Friday.

He said, “US venture capital firms are investing heavily in African tech startups with over 60 and 40 per cent of venture capital funding in Nigeria and Africa respectively coming from the United States.

“Up to 60 per cent of African startups are incorporated in the United States – this figure is 80 per cent when considering Nigeria alone. In 2021, African startups raised $4.8bn, this translates to an average of over $1m every 2 hours,” he said.

He added that the United States accounted for over 40 per cent of Africa’s VC funding in 2022, injecting over $2 billion into various local startups across the continent.

Despite a decline in venture capital funding this year, he noted that prominent US investors such as Techstars, Y-Combinator, and 500 have successfully concluded over 100 significant deals in the first nine months of the year.

He stressed that the numbers indicate that the US has a strong interest in supporting the growth of the digital economies of the continent and Nigeria.

According to him, U.S. investors recognize the potential for substantial returns, considering the rapid growth of African startups that are disrupting traditional industries. He noted Nigeria’s role in reshaping the future of technology in Africa.

He confirmed that a digital transformation is unfolding in Africa, and the Digital Transformation with Africa initiative will enable over $450 million in financing to cultivate an inclusive and resilient digital ecosystem on the continent.


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