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🇳🇬 Nigeria /Technology

Funding Gap Hinders Nigerian Startups, Warns Bet9ja Foundation

From ThisDay · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The Bet9ja Foundation warns that a lack of capital, access, and mentorship, not a shortage of ideas, is hindering Nigerian startups.
  • Schooled Afrika, an EdTech platform, won the ₦10 million grand prize at the Bet9ja Foundation's ScaleUp Business Pitch Night 2.0.
  • The foundation disbursed ₦40 million in grants to 10 finalists, aiming to address funding gaps and support businesses across Nigeria.

Nigeria possesses a wealth of entrepreneurial talent with innovative solutions, but a critical shortage of capital, access, and mentorship is preventing these ideas from blossoming into successful businesses, according to the Bet9ja Foundation. This challenge was starkly illustrated at the foundation's ScaleUp Business Pitch Night 2.0 in Lagos.

Nigeria is not short of entrepreneurs with solutions. What is missing, according to Bet9ja Foundation, is capital, access, and mentorship to turn those ideas into businesses that create jobs and survive beyond the first year.

— Article textIntroducing the core problem identified by the Bet9ja Foundation.

Schooled Afrika, an EdTech platform founded by Bukola Aleriwa, emerged as the grand prize winner, securing ₦10 million. The Bet9ja Foundation doubled the prize money from its initial ₦5 million, a decision Executive Director Ada Cuomo attributed to the significant funding and visibility barriers faced by young founders.

Out of over 900 applications nationwide, only 10 startups were selected for the intensive 10-week program. These finalists participated in business strategy sessions, masterclasses, and received one-on-one advisory in crucial sectors for Nigeria's development, including EdTech, HealthTech, FinTech, AgriFinTech, AI, LegalTech, Sports Tech, and Cross-Border Trade. Ultimately, the Foundation distributed a total of ₦40 million in grants to all finalists.

The move, announced by Executive Director Ada Cuomo, was a direct response to what she called the biggest barrier facing young founders: lack of funding and visibility.

— Article textExplaining the reason for doubling the grand prize.

Cuomo emphasized the urgency of the situation, noting that Nigerian startups contend with difficult operating conditions, limited investor access, and an ecosystem that often overlooks businesses outside Lagos. The ScaleUp program was specifically designed to counteract these issues by offering virtual mentorship, selecting founders from across the country, and connecting winners with larger funding opportunities.

The issue is urgent. Nigerian startups continue to battle tough operating conditions, limited investor access, and a funding ecosystem that often overlooks businesses outside Lagos.

— Ada CuomoExecutive Director of Bet9ja Foundation, highlighting the challenges faced by startups.

Evidence from the program's first cohort demonstrates its impact, with alumni reporting revenue growth, new hires, and securing up to $15,000 in follow-on funding from international organizations after refining their pitches. Judges, including representatives from AVPA, Lagos Angel Network, and ACT Foundation, prioritized innovation, impact, and sustainability, seeking businesses with long-term viability. This focus reflects the broader problem of promising ideas failing to scale due to a lack of structured support and financial backing.

Alumni reported revenue growth, new hires, and follow-on funding of up to $15,000 from international organisations after refining their pitches through the programme.

— Article textShowcasing the impact of the first cohort of the ScaleUp program.
DistantNews Editorial

Originally published by ThisDay in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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