Nigeria VC Funding Shift Sees Fewer Startups Share Bigger Deals

Nigeria VC Funding Shift Sees Fewer Startups Share Bigger Deals

Quick Reads

• Ventures Platform has raised $64M toward a $75M second fund targeting African startups.
• Nigeria’s government backed a VC fund for the first time ever, via its iDICE program.
• IFC, BII, Proparco, Standard Bank, and ex-YC CEO Michael Seibel are among the Limited Partners.
• The firm has funded 90+ startups, including Moniepoint, Paystack, LemFi, and Raenest.
• The second fund expands into Series A and new African markets including Francophone West Africa.

The Ventures Platform seed fund Nigeria milestone is turning heads across the African tech ecosystem. Lagos-based Ventures Platform has raised $64 million for its second fund, targeting a final close of $75 million. That alone is significant. But the real headline is who is in the room.

Nigeria’s government is backing the fund through its Investment in Digital and Creative Enterprises (iDICE) program, marking the first time the government has invested in a VC fund. This is a historic shift. It signals that Nigeria is moving beyond policy statements and putting real capital behind its tech ambitions.

The Ventures Platform seed fund Nigeria also counts several heavyweight institutions among its limited partners. These include IFC, British International Investment (BII), Proparco, Standard Bank, MSMEDA, and AfricaGrow. European family offices and former Y Combinator CEO Michael Seibel are also on the LP list. Moreover, the firm retained strong loyalty from prior investors. 70% of investors from its previous fund returned for this one.

Founded in 2016, the firm has built a clear track record. Ventures Platform has funded over 90 startups across the continent, focusing primarily on what it calls “painkiller” businesses. These are companies in fintech, health tech, agtech, edtech, and AI that solve real access problems.

Its portfolio speaks for itself. Visa-backed unicorn Moniepoint and Stripe-owned Paystack are among its most prominent bets. Both companies fundamentally reshaped how Nigerians access financial services. Other notable names include remittance app LemFi, SeamlessHR, OmniRetail, fintech Raenest, and health tech company Remedial Health.

With this second fund, the firm is also expanding its investment strategy. Beyond pre-seed and seed, Ventures Platform will now pursue Series A investing, while seeking larger ownership stakes and investing with more conviction. That is welcome news for African founders, since Series A capital has grown increasingly scarce as Silicon Valley firms have pulled back.

Geographically, the firm is not stopping at Nigeria. Ventures Platform is establishing a presence in Francophone West Africa and North Africa, regions where it has already made early investments. The move reflects a broader Pan-African ambition.

Founding partner Kola Aina has also addressed the continent’s ongoing funding challenges directly. As he told TechCrunch in an exclusive interview, Africa remains the “purest asymmetric play for non-consensus alpha” for global capital allocators with patience and local context. He notes that by 2050, one in four humans will be African, and GDP growth on the continent is already running at double the U.S. rate.

Additionally, Aina says the firm’s first fund ranks among the top performers globally on TVPI and IRR for its vintage year, a fact that clearly helped attract fresh LP commitments despite broader market headwinds.