Angel Investors Prove Backbone For Nigerian Startups Amid Vc Hiccups

Angel investors remain a cornerstone of funding for Nigerian startups, holding their ground despite the allure of venture capital VC. A newly released report by startup-focused law practice TLP Advisory, A Decade of the Nigerian Venture Ecosystem Numbers, Insights Stories , reveals that 43 of Nigerian startups received their funding from angel investors, including friends and family, over the past decade.

This figure overshadows the 24 of startups funded by VCs and the 18 and 15 that secured funds through debt financing and grants, respectively.

The report, marking TLP Advisory's 10th anniversary, paints a detailed picture of Nigeria's tech ecosystem. It highlights its remarkable growth, systemic challenges, and the critical role of early-stage investors in sustaining the sector through turbulent times.

While VC funding brought a sense of scale and visibility to the ecosystem, angel investors have quietly remained the backbone, the report reveals, providing vital support during the industrys lean periods.

The data is telling Nigerian startups have faced significant funding challenges in recent years, particularly as global VC interest waned.