Chiemerie Chigozie Chibuzor

REPORT ON EXITED AND LEADING STARTUPS IN NIGERIA- Insights For Founders, Angel Investors and Venture Capitalists Exited startups Leading Startups Analysis on Exited Startups in Nigeria The data provided includes 12 startups from various industries in Nigeria that have shut down between 2017 and 2024. Key details include the industry they operated in, the year of shutdown, and the funds they raised. Industry Breakdown: 1. Fintech: Total: 7 startups Details: Zoto (2018) Cova (2024) Thepeer (2024) Pivo (2023) Lazerpay (2023) Zazuu (2022) Bundle Africa (2023) Observation: Fintech has the highest number of failed startups, indicating potential market saturation, intense competition, or regulatory challenges specific to financial technology in Nigeria. 2. Other Sectors: Ride-Sharing: GoMyWay (2017) Marketplace: Efritin (2017) Real Estate: MyPadi (2019) Genomics: 54gene (2023) Blockchain: Vibra (2023) Observation: While other sectors such as ride-sharing, marketplace, real estate, genomics, and blockchain have fewer instances of failure, the challenges in each sector are unique and worth exploring further. Analysis by Funds Raised Amount Raised : $0 2 startups (Efritin, Zoto) Amount Raised $1M: 3 startups 1. MyPadi - $20K 2. Bundle Africa - $450K 3. Lazerpay - $1.1M Amount Raised : $1M - $5M: 1. GoMyWay - $400K, 2. Cova - $800K, 3. Zazuu - $3.12M 4. Pivo - $2M, 5. Thepeer - $2.32M Amount Raised : $5M - $10M: 1. Vibra - $6M) Amount Raised :$10M 2. 54gene - $46.3M Observation: Despite significant funding, 54gene, which raised $46.3M, still failed, highlighting that substantial funding does not guarantee success. Conversely, startups with no or minimal funding (Efritin, Zoto) also failed, suggesting that a lack of capital is a significant risk factor. Year of Shutdown 2017: 2 startups (GoMyWay, Efritin) 2018: 1 startup (Zoto) 2019: 1 startup (MyPadi) 2022: 1 startup (Zazuu) 2023: 5 startups (Pivo, Lazerpay, 54gene, Vibra, Bundle Africa) 2024: 2 startups (Cova, Thepeer) Observation: The year 2023 saw the highest number of shutdowns, suggesting a particularly challenging period for startups specilaized in cryptocurrency transactions, potentially due to economic downturns of the crypto market or other macroeconomic factors. Note: there are other startups that shutdown within these years but we focused more on funded startups Key Points to Note : 1. High Failure Rate in Fintech: The concentration of failed startups in the fintech sector suggests intense competition, regulatory challenges, or market saturation. 2. Impact of Funding: Significant funding doesn't necessarily ensure success. While substantial funds can provide resources for growth, poor management, market fit, or external factors can still lead to failure. Lack of funding is a clear risk factor, as seen with Efritin and Zoto, which did not raise any funds. 3. Yearly Trends: The spike in failures in 2023 could be investigated further for external economic factors, such as market downturns, changes in regulation, or global financial instability. 4. Diverse Industry Challenges: Each industry has its own set of challenges. For example, ride-sharing (GoMyWay) and marketplace (Efritin) sectors may face different regulatory or operational hurdles compared to fintech or genomics. Comparative Analysis: Leading vs. Exited Startups in Nigeria CATEGORY LEADING STARTUPS EXITED STARTUPS Product Market Fit Identified real market needs. Examples: Paystack, Flutterwave Misjudged market demand. Example Hytchride Leadership and Team Experienced and collaborative leadership and team structure Examples: PiggyVest, Kuda Lack of experienced leadership, internal conflicts. Example Pivo , and wejapa Funding and Financial Management Strategic use of capital, diverse revenue streams. Examples: Andela Mismanagement of funds, insufficient funding. example:54gene and Pivo Regulatory Compliance and Adaptation Navigated regulatory environments effectively. Examples: Flutterwave, LifeBank Noncompliance with local laws, regulatory changes. Example 54 gene and vibra Customer Focus and User Experience High customer satisfaction, responsive to feedback. Examples: Kuda, PiggyVest Neglected customer feedback, poor user experience. example: zoto, Bundle Africa and Padi Strategic Partnerships and Networking Leveraged partnerships for growth. Examples: Andela, TradeDepot Lack of partnerships, isolated operations. Example Lazerpay, thepeer, Pivo Sustainable and Dynamic Business Model Adaptability to market changes, and flexibility to pivot as customer needs, and trends changes. Examples Nomba ( formerly Kudi, Piggyvest ( formerly Piggybank ) Paystack ( Formerly Underground) Non-flexible, fixed business Model, and Non adaptable to changes. Examples: Okadabooks, Vibra, Lazerpay VS Highgrowth / leading startups Read about these companies in details here Exited startups Overview of top 10 venture capital investors in Nigeria VC INVESTOR OVERVIEW FOCUS AREAS NOTABLE INVESTMENTS Ingressive Capital Seed-stage investor for techenabled startups in Africa Fintech, Healthtech, Agritech, Edtech Paystack, 54gene, Bamboo Future Africa Invests in mission-driven founders using technology for social good Technology, Healthcare, Education, Finance Flutterwave, Andela, Eden Life EchoVC Partners Early-stage VC firm focused on technology Fintech, Healthtech, Ecommerce, Agritech Lifebank, Hotels.ng, MyPadi TLcom Capital Africa-focused VC firm with offices across major African cities Tech-enabled services, Fintech, Education, Agriculture Twiga Foods, Andela, Kobo360 GreenHouse Capital Fintech investment company and innovation hub Fintech, Insurtech, Healthtech Flutterwave, Max.ng, Rensource Microtraction Provides early-stage funding for startups across sectors Various sectors including Fintech, Healthtech, Logistics Cowrywise, BuyCoins, Wallets Africa Y Combinator Global accelerator with investments in Nigerian startups Tech startups across various sectors Paystack, Flutterwave, Kobo360 Partech Ventures Global investment firm with a dedicated Africa fund Fintech, Healthtech, Ecommerce, Agritech TradeDepot, Yoco, Kudi CRE Venture Capital Africa-focused VC firm investing in transformative companies Technology, Media, Telecommunications Andela, Flutterwave, Yoco Consonance Investment Managers Growth and early-stage investor Technology, Consumer, Business Services Paystack, Flutterwave, Sendy EXITED AND LEADING STARTUPS OUTLOOK- Insights For Founders, Angel Investors and Venture Capitalists