The Federal Government’s sustained efforts to support the nation’s rapidly evolving startups and transform it into a key tech hub in Africa has recorded an investment landmark with the unveiling of a $618 million Investment in Digital and Creative Enterprises (iDICE), to support technology-enabled startups in the country.
A news report from Bloomberg indicated that the new investment initiative represented the largest investment in a $75 million capital-raising exercise by Ventures Platform, a Lagos-based tech company.
The company’s Founding Partner, Mr. Kola Aina, was quoted as disclosing the Federal Government’s commitment to the iDICE and that the International Finance Corp, the UK’s British International Investment, France’s Proparco and Standard Bank Group also made funding commitment to the initiative during a first funding round that closed at $64 million.
With some of Nigeria’s tech startups becoming a dependable source for capital on the continent and transforming into the so-called unicorns with valuations above $1 billion, there had been no major government funding support for the ventures up till now.
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Speaking on the potential benefits of the latest initiative to Nigeria and other economies in the continent, Managing Director/CEO of Bank of Industry (BoI), the bank that supervises the fund for the government, expressed optimism “that iDICE would boost the Nigerian technology and creative sectors by catalysing strategic investments in high-growth, technology-enabled enterprises.”
The banker confirmed that Ventures Platform would serve as the technology equity investment partner of the initiative.
Commenting on the iDICE, the fund’s national coordinator, Ife Adebayo, who recalled that Nigerian startups had been struggling to raise capital for their operations, said that the iDICE “would give them the kind of foundation that they need to thrive.”
The iDICE will invest up to $137 million as equity and $110 million as debt in startups, mainly via other funds on the basis that whatever it puts in is matched at a minimum of one-to-one by the fund’s manager.
Interestingly, Adebayo hinted that some organized private sector partners had pledged to raise another $217 million to support the initiative
The iDICE, which is co-financed by Bank of Industry, African Development Bank (AfDB), the Agence Française de Développement and the Islamic Development Bank (IsDB), aims to support Nigerians aged between 15 and 35 in innovative and early-stage tech startups
