Industrialisation in Nigeria cannot be fully achieved without Venture Capital Funding, said Dr. Simon Okolo, a member of the Presidential Advisory Council.
According to Okolo, Venture capital is money provided by investors to startup firms and small businesses with perceived long-term growth potential.
“This is a very important source of funding for startups that do not have access to capital markets. It typically entails high risk for the investor, but it has the potential for above-average returns.”
“Venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering.
He noted that in exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company’s ownership (and consequently value).
He, therefore, urged the Ministry of Finance and the Central Bank of Nigeria to usher in venture capital in the system to spur industrial investment and growth of the economy.