Nigerian startups raised a total of N26.640billion or $73.6 million, up 800 percent from the N3.240 billion or $9.2 million between April and June this year, according to the latest Nigeria News Direct report on Foreign Direct Investment.
The Q1 2018 report noted that a total of $4,241,196 was raised by 13 startups, mostly from foreign investors, while grants made up almost 70per cent of the deals.
The report added that the amount in the Q2 was mobilised from 30 local and foreign investment firms by 41 startups. Main beneficiaries include 12 companies that provide financial services, 7 agritechs firms, 4 startups active in governance and 3 logistics.
Most of the resource of N17.280 billion or $47.5 million was of type C financing. The online payment provider Cellulant was the only beneficiary of this type of financing. Three other startups received N5.04billion or $13.5 million in type a financing while over N3.6billion $10.2 million was granted as donation to 10 companies.
In another development, a Houston-based private equity firm, Denham Capital, specialising in mining, gas and energy sectors, announced it closed a mining fund worth $558 million that will be deployed on several markets including Africa. The fund targets operable or close-to-be exploitable projects.
“The close of our first mining fund marks a significant and strategic milestone for Denham Capital. We are pleased that our limited partners share our belief that there is a robust pipeline of opportunities across the global mining sector,” said managing partner and co-founder, Carl.
Let’s note that the amount of capital committed to Africa is not specified but markets would surely compete to attract the largest share. Moody’s revealed that China’s economy, which drives the global demand for mining resources, is already seeking for other suppliers outside Africa.
Denham is already active in Africa. The firm’s African portfolio includes Endeavour, which has projects in Ghana, and the wind energy project with Biotherm. However, these projects are yet to be achieved, according to report.