Nigeria startup hotspot! Nigeria named one of the hottest start-up spots in Africa

According to a recent data collection for the funding platform VC4A, startups are becoming one of the primary sources of job creation in Africa. With South Africa, Nigeria and Kenya featuring as the top three countries of startup innovation.

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The statistics say it all, the future of the African ecosystem is bright and growing at an exceptional rate with South Africa having the largest investment per startup, Nigeria having the largest mass of startups and Kenyan startups having received most funding from the platform.

And if that isn’t enough, the data set out to reveal five trends that prove that the African venture scene is on the rise. The five trends which first appeared on Venture Burn are as follows:

EMPLOYMENT

The statistic show that new jobs are being created in almost all African countries due to the venture scene. Over the course of 2014, the average team size for a venture increased by 54%, resulting in close to an impressive 6 jobs per venture.

PERFORMANCE

The performance is definitely one worth noting. In the cut throat industry that is the venture scene, approximately 49% of the ventures start generating revenue in their first year of operation

INVESTMENTS

To top the impressive performance statistics, the report reveals that 44% of all ventures are successful in securing external capital investment. The average capital secured per venture increased from US$129 348 in 2013 to US$205 374 in 2014, otherwise an increase of 59%.

INVESTORS

Of the 600 investor’s part of the community, 82% invested in an African venture. Angels represent one-third of the network, followed by Venture Capital firms and Social Impact Funds.

ECOSYSTEM

The ventures that participate in sector events, or join an incubator or accelerator, secure on average US$126 090 in external investment. This is 23% more than their counterparts who do not participate in such programs.

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