Angel Investors in Nigeria

Imagine this: you are a young entrepreneur in Nigeria and you have an innovative idea for a mobile app (or any other innovative idea) that connects local farmers directly with consumers in cities, cutting out the middleman and ensuring fair prices for both parties.

You had spent months researching the market, developing a business plan, and even creating a prototype of the app.

Your vision is clear, and you are very passionate about making a difference in the agricultural sector, which you feel is ripe for disruption.

Despite your excitement and hard work, you encounter a major challenge: funding. You have exhausted your personal savings and small loans from friends and family. 

Traditional banks are unwilling to lend to you because you are a startup with no track record, and venture capital firms are focused on more established companies.

Each day, you watch opportunities slip away as you struggle to secure the resources you need to launch your app on a larger scale.

At this point, you are wondering if your innovative idea will ever come to life.

How many more entrepreneurs like this are out there, with unfulfilled dreams?

Who will step in to turn these visions into reality?

Only one group of people comes to my mind as I think about this narrative-Angel investors—those who are willing to believe in the potential of early-stage startups and provide the essential funding that will transform their ideas into impactful solutions.

In this article, we will attempt to answer three very important questions:

1. Who are Angel Investors?
2. Where can you find them in Nigeria?
3. How can you qualify for investments from Angel Investors in Nigeria?

Who are Angel Investors?

Angel investors are high-net-worth individuals who use their personal money to provide capital for potential startups in exchange for a share of the company, typically in the form of equity or royalties.

They usually prefer to invest in the early stage of a company, at the “seed” funding phase; when the company is only  an idea, but occasionally, they also invest when a business is already up and running.

In Nigeria, angel investors play an important role in the startup ecosystem, as they provide solutions to the funding challenge that faces many new businesses.

Beyond business capital, these individuals also offer the mentorship, industry connections, and strategic advice that a startup needs to succeed.

Angel Investors are different from venture capitalists in that, while the latter prefers investing in more established startup businesses, angel investors are willing to take the risk  on startups while still in their infancy. At this time, their risk of failure is very high and other investors are unwilling to take the chance.

Also, another difference is the source of funds. Angel investors are private investors that make investments from their personal money while venture capital funds are run by managers who invest other people’s money, plus some of theirs.

An angel investor is also called a business angel, private investor, or seed investor.

Where To Find Angel Investors In Nigeria

If you’re a startup in Nigeria in need of financing, finding angel investors can be the next step to having your dreams realized.

Here are some ways to connect with angel investors in Nigeria:

1. Angel Investment Networks: Angel investor networks don’t only give funding but also mentorship to support startups in their early stages. In Nigeria, many angel investor networks have been the secret to the success of some startups. These guys play a very important role in contributing to the country’s entrepreneurial ecosystem.

The Most Prominent Ones Include:

1. Lagos Angel Network (LAN): Lagos Angel Network was founded in 2012 and is one of the largest and most active angel networks in Nigeria.

The network focuses on connecting startups with angel investors who provide them with both capital and mentorship.

Regularly, LAN organizes pitch events where these startups present their business ideas to a panel of investors. They also offer educational programs for both parties to enhance their investment and business skills.

1. Rising Tide Africa

Rising Tide Africa is part of a global movement called The Rising Tide Program for Africa. It is made up of a group of women angel investors who use their network, passion, and capital to invest in startups.

This network is funded by private investors who believe in bringing about positive change by investing in innovative women-owned start-ups in the continent. 

They empower these women entrepreneurs by providing them with the capital, mentorship, and supportive community they need to build thriving businesses.

Additionally, Rising Tide Africa hosts pitch events, training sessions, and networking opportunities for both investors and entrepreneurs. Their investments in female-led startups have played a major role in promoting gender diversity and inclusion in the Nigerian entrepreneurial ecosystem.

iii. Ventures Platform

Ventures Platform is a seed stage venture capital firm and angel investment network. It provides African startups with capital, mentorship, and a growth-oriented community.

The network actively finds, funds and supports innovative companies with ambitious founders who are solving real problems across the continent.

They invest in scalable tech-enabled business models in the fintech, health tech, and agritech sectors.

The network has backed several successful startups across Africa, including Paystack, which was acquired by Stripe for $200 million.

1. GreenHouse Capital

GreenHouse Capital was established in 2014 by Venture Garden Group. It is a Nigerian-based venture capital firm that also acts as an angel investor network.

It focuses on investing in innovative African companies with growth potential, especially fintech and other tech-enabled startups (in banking, education, and renewable energy). They also run GreenHouse Lab, a female-focused tech accelerator program.

GreenHouse Capital gives startup funding, growth capital, and strategic support to the companies in its portfolio.

The organization has supported several high-growth startups, including Flutterwave, (one of Africa’s leading fintech companies), BFree, Zemo, Quanto, Sabi, Keble, MoniMove, Route.Money, Mano, Apaya Uqudo etc.

How can you Qualify for Investments from Angel Investors in Nigeria?

You will agree with me that it’s not just enough to know who angel investors are and where they can be found.

What’s more important is how to get these investors to fund your dream. This is the reason why you’ve kept reading till now.

1. Develop a Solid Business Plan

A solid business plan is one that is well structured and detailed, clearly outlining your vision, market analysis, business model, financial projections, and growth strategy.

When your business plan is clear and  well-structured, it shows professionalism and reflects that you are prepared for an investment opportunity. Investors want to see a well thought out plan before risking their money to fund any project.

When writing your business plan, include a compelling executive summary that grabs the attention of potential investors, while highlighting how your business will profit them.

This resource should help you build a perfect business plan that attracts investors.

2. Build a Prototype or Minimum Viable Product (MVP):

A minimum viable product is the first functional version of a product with a basic set of useful features. This minimal set of features shows how your idea stands out, and attracts users because it can provide a solution to their pain points.

Although a minimum viable product is usually small and usually simple, it is a working solution that users can interact with.

This early version of your product will allow you to test your hypotheses and proof-of-concept (POC).

Developing a Minimum Viable Product also shows investors that you can bring your idea to life and make your pitch more convincing.

Depending on how interesting they think your idea is, it can pique their curiosity and encourage them to invest and explore further.

Investors often look for entrepreneurs who can execute on their vision, and a well-executed MVP shows that you are able to turn ideas into reality.

Remember, though, that an MVP is just the beginning—continuously improve and adjust the product based on the feedback you receive from its use.

3. Register and join Angel Investor Networks like the ones listed above and others you may find as you research further.

These networks often have an application process through which you can join and present your business to their member investors.

Do not just join these networks, attend local startup events and conferences around you.

During networking sessions, connect with other entrepreneurs, industry professionals, and potential investors.

Participate in pitch competitions to showcase your business. Events like the Lagos Startup Week and Africa Fintech Summit are great opportunities for this.

Also, accelerator programs like the Lagos Innovates, Co-Creation Hub (CcHUB), etc, provide networking opportunities and mentorship to startups. They often have demo days where you can pitch your business ideas to a room full of investors.

4. Create And Share A Pitch Deck:

After you have developed your solid business plan, built your MVP, and even gone ahead to join angel investor networks, the next step is to create and share your pitch deck.

A pitch deck is a short presentation that gives potential investors a general overview of your business plan, products, services, and growth process so far.

You already know how important it is to get the financing you need from Angel Investors.

But to do so, you’ll need to communicate your ideas to them in a way that gets them interested in, and excited about investing in it. No investor will fund an idea he is not interested in.

A pitch deck serves a dual purpose: it does not only give investors an overview of your idea, making it easier for them to evaluate the investment potential; it also helps you the visioner, as a mental exercise that reminds you of the most important aspects of your business. 

Your pitch deck shouldn’t be a boring business presentation but should tell your company’s story in the most interesting way possible.

There are a lot of ways to go about crafting an engaging pitch deck. However, your pitch deck slides should include important aspects like your introduction, the problem you intend to solve, your proposed solution (i.e how you intend to solve it), market size and opportunity, product, your team, competition, financials, and how you intend to use the funds.

Also, consider highlighting any milestones you’ve achieved, like traction, early sales, partnerships, or pilot programs. This builds credibility and shows that you’ve made some progress.

The goal of your pitch deck is very clear: to serve as a tool with which you persuade your investor audience to trust you and your solution so they want to invest their money in your idea.

The confidence with which you share your pitch is as important as the pitch itself because you can have a well-crafted pitch but you’re too afraid or intimidated to share it with investors. This lack of confidence can cost you the opportunity for potential funding.

You cannot convince an investor that you have the solution to a problem when you first do not believe in the solution you’re offering. You must be the first believer in your idea and passionately show this conviction in the way you share your pitch.

5. Seek Mentorship 

Finally, engaging with mentors can provide valuable guidance as to what your next step should be henceforth. Also, forming an advisory board with respected industry experts can help fine-tune your strategy and introduce you to potential investors and entrepreneurs within their circle.

These experienced advisors can also provide credibility and guidance, while helping you with some very strategic decisions.

Mentorship Programs like the Tony Elumelu Foundation Entrepreneurship Programme is a great place that offers valuable coaching and networking opportunities to African startups like you.

In conclusion, an angel investor may be the key to turning your amazing business idea into a flourishing reality.

With their financial assistance, expertise, and connections, they can give your dream a chance to take off, and provide the resources to grow and succeed.

Ready to birth your vision? You can increase their chances of attracting angel investors and turning your business ideas into reality by following steps listed above. Cheers to your success!