Tech startups globally serve as economic pillars. Despite their crucial role, funding obstacles hinder their growth, particularly in Africa. To address this, companies are increasingly seeking funds to propel startup progress, recognizing their pivotal contribution to national development.
Investment firm Aduna Capital announced the launch of a $20 million fund dedicated to revolutionizing the African tech startup ecosystem, on November 20.
According to the press release announcing the fund, it will mainly target the underserved market of Northern Nigeria, which is home to over 128 million people (according to a 2021 report by the National Bureau of Statistics). Citing a 2023 report from the Northern Founders Community (NFC), the release indicates: “Start-ups in sectors like edtech and agritech in this region [ed. note: Northern Nigeria] are already making over $1.2 million in bootstrapped revenue.” Therefore, Aduna Capital believes that “With proper funding and support, these start-ups have the potential to scale significantly, both within the continent and globally.”
Founded by entrepreneurs Surayyah Ahmad Sani (the co-founder of Ethco, a startup helping ethnic stores go digital, and the chairperson of the Northern Founders Community (NFC) and Sanusi Ismaila (founder of Colab, the largest innovation hub in Kaduna), Aduna Capital stands as both an investment firm and an ecosystem fostering innovation.
Sanusi Ismaila notes Aduna Capital's strategy extends beyond Northern Nigeria, with 25% of the fund for the rest of Nigeria and 25% for start-ups across Africa, fostering a diverse portfolio. Committed to diversity, Aduna Capital allocates 50% of investments to female-led start-ups.
The Capital's strategy targets super early and pre-seed stage investments, aiming for “a 5–10x return on investment, balancing profitable returns for its investors with meaningful investments,” he revealed.
Aduna Capital's $20 million fund signals a transformative step for African tech start-ups. With a strategic focus on underserved regions, diversity, and pan-African growth, the firm aims to make a lasting impact on the continent's entrepreneurial landscape.
Hikmatu Bilali
