The Consul General of the United States of America, Will Stevens, has disclosed that over 80 percent of Nigerian start-ups are incorporated in the US, while more than half of such ventures get their funding also from the US.
The Consul General stated these in his keynote address at the Global Tech Africa Conference held in Lagos at the weekend.
“US venture capital firms are investing heavily in African tech startups with over 60 and 40 per cent of venture capital funding in Nigeria and Africa respectively coming from the United States.
“Up to 60 per cent of African startups are incorporated in the United States – this figure is 80 per cent when considering Nigeria alone. In 2021, African startups raised $4.8billion, this translates to an average of over $1million every 2 hours.
“The United States accounted for over 40 per cent of Africa’s VC funding in 2022 with over $2 billion injected into local startups”.
He noted that while there has been a decline in VC funding this year, US investors like Techstars, Y-Combinator, and 500 have closed over 100 major deals within the first nine months of the year.
He highlighted that the numbers indicate that the US has a strong interest in supporting the growth of the digital economies of the continent and Nigeria.
“As a whole, the U.S.-Africa startup/venture capital scene continues to be an immensely important mutually-beneficial bilateral corridor. At the Consulate here in Lagos, we work with numerous startups to facilitate their participation in incubator and accelerator programs, thereby connecting these Nigerian startups with global markets.
He further declared that US investors see the potential for high returns as African startups are growing rapidly with many of them disrupting traditional industries.
He stressed that Nigeria is reshaping the future of technology in Africa.
He concluded by affirming that a digital transformation is underway in Africa, and the Digital Transformation with Africa initiative will facilitate more than $450million in financing to develop an inclusive and resilient digital ecosystem in Africa.