Nigeria’s startup ecosystem has witnessed remarkable growth over the past five years, attracting billions of dollars in venture funding and producing some of Africa’s most recognised technology companies. Yet despite this progress, questions remain about capital accessibility, founder readiness, governance standards, and the sustainability of the ecosystem’s growth trajectory. In this interview with KENNETH ATHEKAME, a venture architect and investment strategist at Greylight, Adejumo Joba shares insights on the evolving investment landscape, the challenges facing founders seeking institutional capital, and why culture-driven ventures may represent Africa’s next major economic opportunity. Excerpts:
You operate at the intersection of venture development, capital strategy and leadership formation. How would you assess the current state of Nigeria’s venture and investment ecosystem, particularly for early-stage founders?
Nigeria’s venture ecosystem is undoubtedly expanding. Compared with three or four years ago, the progress is significant. We are seeing more ecosystem builders emerge from the private sector, corporate institutions and even government agencies. Organisations that previously paid little attention to startup development are now launching dedicated support programmes, accelerators and funding initiatives. However, growth should not be mistaken for maturity. Significant gaps remain around access to capital, founder support and alignment between what entrepreneurs need and what the ecosystem currently provides. While there is still substantial work to do, the direction is encouraging. Arguably, there has never been a better time to build a company in Nigeria than now.
Greylight focuses on companies shaping culture across media, entertainment and technology. Why are culture-driven ventures becoming increasingly relevant?
I would challenge the assumption that culture-focused ventures are already attracting widespread investor attention. In reality, they remain relatively underfunded, which is precisely why we exist. Most capital across Africa continues to flow into sectors such as fintech, logistics, education technology and climate-related businesses because investors understand their return profiles. Media and entertainment remain niche investment categories. Our conviction is that African culture is already influencing global consumption patterns through music, film, fashion and storytelling. Yet the infrastructure and capital required to convert that cultural influence into long-term economic value remain concentrated outside the continent. That disconnect represents a significant investment opportunity.
Many founders struggle to secure institutional funding. What are the biggest obstacles?
Three issues consistently emerge. The first is governance. Institutional investors require proper incorporation structures, clean cap tables and robust documentation. Many startups lack these fundamentals.
The second is revenue readiness. Venture capital is typically designed for businesses that have demonstrated traction and growth potential. Yet many founders seeking institutional funding remain pre-revenue or generate insufficient recurring income.
The third challenge is operational maturity. Investors expect disciplined financial reporting, governance processes and operational clarity. Many founders have not developed those capabilities. The reality is that most founders who believe they are ready for institutional capital are often not. Closing that gap is where venture support organisations must play a more active role.
How can founders better align with venture capital expectations?
Before answering that, we need to ask whether venture capital is always the right financing model for African businesses.
The venture model is built on the expectation that a small number of companies will generate outsized returns. That generally requires highly scalable, technology-driven businesses operating in large markets. Many African businesses do not fit that profile.
Founders pursuing venture capital must build venture-backable businesses with strong growth potential. But we also need financing models that better reflect African realities, including patient capital, revenue-sharing arrangements and blended finance structures. Agriculture, for example, remains one of Africa’s most important sectors, yet its economics do not fit neatly within traditional venture capital expectations.
How does Nigeria compare with other African markets in terms of investment readiness and deal flow?
Nigeria remains one of Africa’s most attractive startup markets. The country’s economic and political challenges have produced resilient founders capable of solving problems under difficult conditions.
The quality of startup communities has also improved investment readiness by helping founders understand governance, fundraising and business fundamentals. As a result, Nigeria consistently ranks among Africa’s leading destinations for startup investment alongside South Africa, Kenya and Egypt.
The next challenge is converting strong deal flow into more consistent capital deployment.
What trends are you currently observing in venture funding?
One of the most important developments is the rise of corporate venture capital. Large institutions, including banks, insurers and conglomerates, are increasingly exploring startup partnerships and innovation programmes.
This trend is likely to accelerate because corporations possess distribution networks, balance sheets and industry expertise, while startups bring agility and innovation.
At the same time, artificial intelligence is reducing barriers to product development. More founders will launch products, and among them will emerge the next generation of transformative companies.
Looking ahead, what structural changes are required to unlock more sustainable venture capital growth in Nigeria?
Two priorities stand out. The first is policy reform. Nigeria needs regulatory frameworks that actively encourage innovation through tax incentives, startup-friendly regulations and policy consistency. The second is infrastructure. Reliable electricity, transportation networks and logistics systems are not separate from the startup conversation; they are fundamental to it. Weak infrastructure raises operational costs and investment risk.
Improving these foundations will strengthen investor confidence, reduce risk premiums and attract more capital into the ecosystem.
Finally, what advice would you give to the next generation of founders?
Build with conviction, but anchor that conviction in fundamentals.
Understand your customers deeply. Focus on distribution, governance, unit economics and trust. Do not assume that business models from Silicon Valley can be transplanted directly into Nigeria without adaptation.
Most importantly, build businesses designed to endure. Capital follows companies that solve real problems and generate sustainable value. Those fundamentals should always come before fundraising.
