Four in five Nigerian startups, including Paystack, Flutterwave, Moniepoint, and ThriveAgric, are incorporated in the US. Additionally, 60% of venture funding for Nigerian startups comes from the US, as revealed by US Consul General Will Stevens at the Global Tech Africa Conference in November 2023.
The Bay Area, encompassing San Francisco and its surrounding metros, is a major hub for venture capital. In 2023, over 40% of US venture funding went to Bay Area startups. This region is also home to Y Combinator (YC), the world’s leading startup accelerator. Flutterwave’s CEO Olugbenga Agboola stated, “We set up in San Francisco because of YC.” YC has backed over 106 African startups, about 50% of which are Nigerian.
The San Francisco Bay Area and nearby Silicon Valley are globally recognized as major sources of startup ecosystem funding, boasting a combined GDP of just over $929 billion and hosting over 200 of the world’s largest companies by revenue. In 2023, the majority of the $1.3 billion raised by Nigerian technology startups came from Bay Area venture capital funds.
Recognizing the Bay Area’s importance, the Nigerian government is converting a long-unused 4,200-square-foot property in San Francisco into the “Nigerian Digital Technology Exchange Programme Hub” (Nigeria Startup House). Announced by Minister Bosun Tijani, this initiative aims to attract foreign direct investment and enhance the visibility of Nigeria’s startup ecosystem. Managed by a consortium of Nigerian digital technology companies, the hub will leverage private funding.
According to a statement by the Minister of Digital Economy Dr. Bosun Tijani, he said “Although ownership of the Nigeria Startup House will remain with the Federal Government, represented by the Federal Ministry of Communications, Innovation & Digital Economy, and the Federal Ministry of Foreign Affairs, it will be managed by a consortium of Nigerian digital technology companies. These companies will provide private funding for the operations of the Startup House.”
The launch date for the hub has yet to be disclosed.
