The startup ecosystem in northern Nigeria has experienced some growth since 2016, yet entrepreneurs from this region face unique challenges in trying to scale, including a lack of infrastructure and investor bias. 

The Founding Partner and Chief Technology Officer of The Scath Companies, TSC, Oluwajimi Akitunde, made this known in a statement on Monday.

Akintunde stated, “Unlike the startup ecosystem in states like Lagos, which is now the face of the country’s thriving ecosystem, startups in northern Nigerian states are still struggling to convince investors that they exist.

“And this is where The scath companies (TSC) comes in, providing tech entrepreneurs from emerging & underrepresented regions currently northern Nigeria with funding and advisory services to bring their ideas to life.

“We are a hybrid venture capital firm whose unique approach encompasses various features aimed at talent development, startup nurturing, and innovation funding, across multiple verticals. 

“With two-thirds of Nigeria’s population residing in the north, TSC recognizes such emerging and underrepresented region’s potential and has launched its $10 million dollar sector agnostic fund 1 in other to support more startups with larger investments ranging from $50K to $100K, for an average equity stake of 7.5%.

“TSC’s current portfolio spans mobility, agritech, recyclable wearable, and fintech with promising results and a growing pipeline of startup applications.”

Akintunde further stated, “As Nigeria acknowledges the significance of startup ecosystems in boosting GDP, there’s a rising demand for venture capital. TSC plays a pivotal role in transforming emerging regions, supporting early-stage businesses, and facilitating national growth across multiple verticals.

“Considering the projected increase in Africa’s working population TSC emphasizes the importance of addressing challenges faced by startups, such as limited visibility and infrastructure gaps. 

“TSC’s hybrid approach addresses awareness, talent, and infrastructure gaps, contributing significantly to the region’s startup ecosystem growth. Of the few challenges that ecosystem startups face when it comes to venture capital and venture capitalists.” 

The statement further said, “The first challenge is that ecosystem startups in this region  don’t get enough visibility coupled with a wide infrastructure gap experienced in this region. This challenge is what The scath companies currently solves using their hybrid approach to addresses the awareness, talent;

“…infrastructure & Funding playing a vital part of the region startup ecosystem growth serving as a financial & advisory tool that is used to help startup companies grow and expand & also support early risk takers with new & out of  the box business idea.

“By Simplifying funding, digital literacy & advisory TSC’s diverse offerings, including a co-working space recognized as a member hub by AFRILABS and the Innovation support network in Nigeria,  an accelerator program, and a tech talent academy, and a vibrant knowledge base community position it as a key player in the region’s startup ecosystem growth. 

“Recognized in the prestigious 2024 Africa Startup Ecosystem Builders Awards (ASEB) in the following category (ies): This recognition is a testament to your outstanding contributions and unwavering commitment to fostering entrepreneurship and innovation in the continent.”