Nigerias startup investment scene needs patient capital aruma oteh

A great article by Aruma Oteh, a renowned Nigerian entrepreneur and investor!

In her article, Aruma Oteh highlights the need for patient capital in Nigeria's startup investment scene. Here's a summary of her key points:

The challenges of Nigeria's startup ecosystem

Nigeria's startup ecosystem faces several challenges, including:

  1. Lack of funding: Many startups struggle to access funding, which hinders their growth and scalability.
  2. High failure rates: The high failure rate of startups in Nigeria is partly due to the lack of patient capital, which can help entrepreneurs navigate challenges and achieve long-term success.
  3. Limited access to markets: Many startups in Nigeria face difficulties in accessing local and international markets, which limits their growth potential.

The need for patient capital

Aruma Oteh argues that patient capital is essential for Nigeria's startup ecosystem to thrive. Patient capital refers to investment that is made with a long-term perspective, often taking several years to generate returns. This type of capital is particularly important for startups that require time to develop their products, build their teams, and scale their businesses.

Benefits of patient capital

The benefits of patient capital include:

  1. Long-term thinking: Patient capital encourages investors to think long-term, which can lead to more sustainable and successful investments.
  2. Risk tolerance: Patient capital allows investors to take calculated risks, which can lead to higher returns and more innovative investments.
  3. Support for growth: Patient capital can provide the necessary support for startups to grow and scale, which can lead to job creation, economic growth, and increased competitiveness.

Examples of patient capital in action

Aruma Oteh highlights several examples of patient capital in action, including:

  1. The rise of venture capital firms: Venture capital firms like 500 Startups, Y Combinator, and Sequoia Capital have been successful in providing patient capital to startups, leading to significant returns and growth.
  2. The growth of angel networks: Angel networks like the Nigerian Angel Network and the African Business Angel Network have been successful in providing patient capital to startups, often with a focus on social impact.
  3. The emergence of impact investors: Impact investors like the Global Impact Investing Network (GIIN) and the Schwab Foundation for Social Entrepreneurship have been successful in providing patient capital to social enterprises, often with a focus on sustainable development.

Conclusion

In conclusion, Aruma Oteh emphasizes the need for patient capital in Nigeria's startup ecosystem. Patient capital can provide the necessary support for startups to grow and scale, leading to job creation, economic growth, and increased competitiveness. By providing patient capital, investors can help entrepreneurs navigate challenges, achieve long-term success, and create sustainable businesses that benefit society as a whole.