I will like to know why there are no venture capitalist here in Nigeria for the IT sector despite the billions of dollars that are been reaped from the global IT sector.

Share your views and comments.

When you say venture capitalists, what exactly do you mean?

Venture Capital/capitalist (VCs) are companies or individuals that are into the financining of start-up projects/companies. They provide the take-off grant and at times financing and operating funds for companies/startups. The money they provide are not loans, they simply invest in the startup with the hope of getting back their money and a percentage of the startup market share when it finally take root.

The need for a VC arises from the fact that startups do find it difficult to obtain bank loans despite having a veritable business plan(s), product or service to market. They can also not go to the stock market to raise funds due to some requirements that they can't meet.

Companies like Yahoo, Google and a host of other ICT powerhouse today were financed by VCs/Angel Investors that are reaping the benefit of taking such leap of faith back then.

Some of the well known VCs are Sequoia Capital, Venrock Associates.

Venture Capitals/Capitalists normally get their initial investments back when the startup go to the stock market for the IPO (Intitial Public Offering).

You can read more about VCs in the US here http://www.nvca.org/ .

the truth is that the rich dudes in naija r selfish and dumb. a lot of them got their money from frauds and government contracts. the idea of value/wealth creation via vc activities is strange to them. they would rather finance someone going to the guber so there could be promises of money.

even despite cbn directive of banks saving 10% of the PBT for SME projects, how many have you seen?

Adedibu recently embarassed the nation by publicly saying he and Ladoja agreed to pay him (Adedibu) 1/4 of the 60+ million naira "Security Vote"

Now, thats the type of venture capitalism that operates mostly in 9ja.

dejiolowe:

the truth is that the rich dudes in naija r selfish and dumb. a lot of them got their money from frauds and government contracts. the idea of value/wealth creation via vc activities is strange to them. they would rather finance someone going to the guber so there could be promises of money.

Exactly. Most of the rich people don't know jack about computers or IT anyway, talk less of investing in some startup IT firm or some young guys who want to start programming. The largest IT firms in Nigeria are still quite small, and none of them is on the Stock exchange yet. The main problem is that Nigeria has not fully embraced IT.

africanboy:

Adedibu recently embarassed the nation by publicly saying he and Ladoja agreed to pay him (Adedibu) 1/4 of the 60+ million naira "Security Vote"

Now, thats the type of venture capitalism that operates mostly in Nigeria.

Is that the kind of man that will invest into IT in Nigeria? He'll just impeach the CEO one day and replace him with some dude who didn't go to secondary school.

VC is not really all about IT and Tech companies/startups, it can be in just any other fields of human endeavour. But the IT sector is one major cashcow for VCs.

That's what that yeye Transcorp suppose to look into when they go about talking about taking on Microsoft, Toyota etc.

Is that the kind of man that will invest into IT in Nigeria? He'll just impeach the CEO one day and replace him with some dude who didn't go to secondary school.

The feudal lord of Oyo state will just download all the money meant for R& into his Molete castle for a hot amala and gbegiri filled carnival.

I am a retired venture capitalist. I have put more money into Nigerian e-commerce deals than most, but at the moment I use the word retired for the following reasons.

1. The work is never completed.
2. The venturer thinks that he can screw you. He will borrow money from various sources (when he can) with the same idea and then never finishes.
3. I am yet to see a good idea that goes from start to finish
4. Loyalties change once money is on the ground and the project never finishes.
6. The partners quarrel once they are funded and the project never finishes.
7. Most people forget technology is a business and so needs a business plan so many deals are not funded, so that idea never ....

Catch my drift

I still look for great ideas, do you know what most people want money for?

1. HYIP
2. Fx trading.....
there are very very very very few really good original ideas with an understanding of the dynamics of the e-marketplace.


All things considered, show me a great deal and I will "show you the money"

Pendelite, which area of IT did you finance? Do you know those guys you funded, do you know how passionate they are with the project.

If you get anyone that's passionate with what he's doing am sure he will give you a good return for your money.

The whole idea of funding is not to know the people in advance but believe in their ideas and the value it will create and yes they were in deep passionate; dedicated is another story. In times of hunger the mind is a very imaginative. In times of comfort, there are many excuses for failure.

While I choose not to disclose names here are some things I have given money to in the past.

1. A transaction switching system. The people went some way and then went another and as it advanced they started shopping the project to other people.

2. I put up the money for a visa (travel like embassy) online processing system. They did a beautiful presentation to the embassies at the lagoon and then lost focus. Like the first one, suddenly there were partners I had never heard of before.

3. An e-commerce portal when portals were brand new. (and this one was to someone that went to the same high school as me just 10 years later). As it advanced, it became solely his project and of course he never completed it.

4. Several software projects that have not seen the light of day. From banking to insurance to retail apps.

I've paid people in Ukraine, Russia, India, USA to complete projects that were started in Nigeria, unfortunately. yet everyone says there are no opportunities.

Venture capitalist have a stake in your idea till it becomes a product. They don't make money from just giving your money. They make money when they turned your idea to a product that is comercially viable. Until then it is just an idea and the money goes down the drain.

Truth, Nigerians are just not thinking about the global potential of an idea. How a simple idea that meets a need can make the initiator a global billionaire. That is the basic premise of the technological dream.

Everyday people with money call me and ask what will be the next big thing. VC is a club of friends, I have friends that will jump on it with the cash to make it happen. But currently we have all adopted the global dream at the expense of the Nigerian dream. Just yesterday a friend sent me a proposal for Ghana and it sounded great. There are now lots of technological opportunities opening up as Liberia opens up; we are funding broadband projects in Ghana and Liberia as well as Liberian data center as they can recruit English and French speakers. By the way our friends own 5% of PALM Inc. You can read about it here. www.sagioinvest.com. In their case, they will not touch you until you go public and even on the Nigerian stock exchange.

Bottom line, you have an idea, send us an none-disclosure agreement and we can talk........ Since we are anonymous on nairaland. Just send us a PM and we will give you details if we are interested.




So area (technology), opportunities in Nigeria; can't find.

well pendelite could be right, passion is not enough for the startup .... discipline, focus, willingness to sacrifice all and everything for their dream.

Nigeria i regret to saw are only focused on how fast their idea will bring in money. They forget it takes time and sloving problems to get it sacrifice. I will not put money in an idea because it sounds good. I will if i see that the proposer is willing to sacrifice everything to make the idea work. Nigerias would just want the new company to start amking millions overnight and hence would bring in as many people as possible to pour in finance and consequently enriching themselves and shortchanging others.

Well, in politics, you see the do or die nature of it. The rich can afford to put their money on the winning horse knowing that they will be rewarded fast. (The Nigerian mentality)

The google idea, though concieved as a thesis took work to realise it, Microsoft (Bill gate), Micheal Dell made sacrifices others will not even consider. They believed so strongly in what they set out to do that they were willing to burn their bridges as they crossed it.

Pendelite,
please can you send me a pm message i think i might have a coiuple of ideas that might be worth your while

well i dont mind given my ideas too can u drop your email ad?

thanks for your input do get back to me i will link you up with venture equity partner oversea that fund Nigeria start up/expansion

tolaerinle,

pls i need the info on VC partner that fund start up in Nigeria.

email: xtayle@gmail.com

0702 709 9121
0803 351 1538

Best regards.

@pendelite
the sagoe website is not opening. I tried to find a means to send a pm to you in here but don't know how to go about it. I have tons of ideas that will benefit everyone involved, l have business plans for just a few of them.

I would like to have a way to communicate with you privately, this is absolutely no scam as l know its easier to make money legitimately than illegitmately.

My email addy is ajayit75@yahoo.com, my phone numbers are 07094029826, 07065926857. I have ideas you will be delighted to invest in in different aspects of Naija's economy. I could list them for you and if you want a business plan for whichever one you'll like to invest in, l'll produce the business plan within a stipulated time frame.

I hope l get to hear back from you and your replying to me won't be a waste of time.

@joftech
Thanks for starting this post.

Regards,

Olutayo Ajayi.

1

There are Venture Capitalists for all sectors of the economy. All u need is a solid business, a strong business plan and a smart presentation of your plans.

I was very lucky 2 find one nice ANGEL INVESTOR last year. Couldnt believe it though. The Gospel Truth is dat they are everywhere BUT very HARD 2 find,

methodman, please send me details of any angel investor u know. I have these business ideas to discuss pls.

Hi Methodman,
Kindly send me details about the Angel invest,please i have a viable business idea that is Mega City Compliance.Any investor will jump at it,kindly send it to y2kaustin@gmail.com or you text it to me via 07028053231, thanks,

@Pendelite. Is there a way for a moderately liquid investor with IT knowledge to join. I might know some newly rich who want to invest in good ideas. Would appreciate a reply.

Raising funds for serious business owners and entrepreneurs has gotten easier over the years as several venture capital firms and private equity investment funds now operate in Nigeria. several key businesses have raised funds through them.

check out a list and profiles and contact address of these firms free at www.africainvestor..com

hope you find these information useful.

There are VC firms in Nigeria. I worked in a Venture Capital firm here in Lagos before leaving to join a research & training consulting firm where train and help clients (start-ups or Existing) package business plan, write proposals or conduct a feasibility report for several purposes.

Grofin, Alitheia capital, FFL, V & T are examples VC firms in Nigeria. The challenge is that MOST of them dont do start-up's, While very few ask of Owners Equity. But they are very very real and they FINANCE.

You can reach me on 08066363000 for further discussions on how we can help you access VC fund here in Nigeria.

The presence of venture capital industry in Nigeria is unnoticed and ignored, though there few venture capitalists in the country.

FOR MORE ON VENTURE CAPITAL IN NIGERIA AND LIST OF VENTURE CAPITAL FIRMS AND INVESTMENT BANKS IN NIGERIA SEE

http://www.vcinvestmentpartners.com/venture-capital-overview/