Aduna Capital, a Nigerian venture capital firm, has announced the launch of a $20 million fund with a unique focus. The fund will allocate 55.5% of its investments to startups operating in Northern Nigeria, a region often overlooked by the country’s tech ecosystem. Recognizing the underrepresentation of female founders in the Nigerian tech scene, Aduna Capital also aims to achieve 50% female representation among its portfolio companies.
Leading this initiative is Surayyah Ahmad, an experienced entrepreneur and co-founder of Aduna Capital. Ahmad’s entrepreneurial journey includes founding YDS Online, an e-commerce startup successfully acquired in 2022, and co-founding Ethco, a platform empowering ethnic stores with digital solutions. She also chairs the Northern Founders Community, a vital platform for fostering entrepreneurial growth in the region.
Joining Ahmad is Sanusi Ismaila, a prominent figure in Northern Nigeria’s tech landscape. As the founder of Colab, a leading innovation hub in Kaduna State, Ismaila has played a pivotal role in nurturing a thriving startup ecosystem in the region, supporting the growth of successful ventures like Sudo and Payant.
Aduna Capital aims to address the significant disparities within Nigeria’s tech ecosystem. While Lagos dominates the scene, attracting over 80% of startup activity, Northern Nigeria, home to over 100 million people, often receives limited investment and support. Furthermore, despite their significant contributions, female founders continue to face significant hurdles in accessing capital.
Aduna Capital seeks to bridge this gap by providing crucial funding and support to early-stage startups in Northern Nigeria, particularly those led by women.
The fund will primarily focus on pre-seed and seed-stage investments, with a target of over 50 portfolio companies. Recognizing the limitations of traditional venture capital models in certain regions, Aduna Capital will explore alternative investment structures, such as profit-sharing, to cater to the specific needs and preferences of its investors.
While the firm will primarily invest between $50,000 and $200,000 per startup, it also plans to provide angel investments to bridge the gap in early-stage funding within the region. While exits typically occur at the Series A stage, Aduna Capital intends to retain a portion of its portfolio, allowing for follow-on investments in high-growth companies.
This initiative represents a significant step towards fostering a more inclusive and equitable tech ecosystem in Nigeria, empowering entrepreneurs in under-served regions and promoting greater gender diversity within the startup landscape.
