Following the recent Africa High Growth Summit recently held in Lagos, Maya Horgan-Famodu, Founder, Ingressive, says the investment firm is aiming $100m investment in the next five years on Nigerian IT startups.
“We would like to see an investment of $100million in 5 years across different startups in Nigeria from technology, health care technology, education technology, financial technology. We are looking at fast-growing startups that have fractions but can still influence the trajectory of the business.
Ingressive hosted the Africa High Growth Summit in partnership with the State partners, with over 350 technology companies and over a hundred angel investors at the Land Mark Event Center.
There were over US based successful business founders and operators on various strategies, tactics and tools technology startups can use to expand their growth and improve productivity in Africa.
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“Our focus is on Sub Saharan Africa and Nigeria in particular because of the market size and opportunity that exists here. If you want to back technology in Africa, you to invest in Nigeria. The first billion dollar company in Africa came from Nigeria; this is the richest entrepreneurial ecosystem. Nigerians are hustlers and industrious, there are lots happening here”, she said.
We are leveraging the network from Silicon Valley to sub Saharan Africa. Silicon Valley investors are looking forward to diversify their investment, looking for lower valuations and equal returns. So Nigeria startups could be the company, with the sought equal tractions.
And of course, they would want to participate in one with a lower valuation, where they can have more equity and opportunities. That’s why the network has come from San Francisco, and that’s the concentration of technical expertise. People from there can service great mentorship and ready to bring their capital to Nigeria.
Commenting on the maturity of the proposed investment, she said it’s going to take 7 to 10. It’s not a technology company; it is a startup, and the horizon is significantly longer than the traditional investment like equity or real estate.
The traditionally fund life is ten years; it does take a whole of time to mature and realize. The strategy is when these angel investors and venture capitalists come in with their money, they will turn into liquidity and liquidity happens when the company is either bought or so. It’s starts, goes public and regarding turning to dividends. That point investors see their money back. The life cycle is anticipated to be around ten years.
“Just look at the Nigerian population, we are talking about 182 million, one portion out of five of Africans population. That’s significant, and it cannot be ignored”, John Gray, key stakeholder at the Africa High Growth Summit, told techsmart.
He said. However, the partnership is paramount because it’s a win and win situation. This is a situation where by successful companies in the US can come to Nigeria and replicate its activities to develop start-ups.
“ Nigeria startup will feel the vibes in terms of economic growth, which is about job creation and prosperity. This is a sector where is so much energy and potential is developed. It could make society better and as well lives of the people”, he added.
