Startups in Lagos got the highest money in the Sub-Saharan region of the African startup ecosystem.

According to a Startup Genome research, Lagos startups got about $820 million.

The sum was calculated by adding together startup valuation and exit value from the second quarter of 2020 to 2022.

Out of the 40 technological companies nominated by Google for the $4 million Black Founders Fund, about 10 Nigerian startups were chosen.

Lagos Takes The Lead

African and European startups made up the majority of the list.

The Lagos startup ecosystem, according to the policy and advisory research firm’s report, was valued at $8.4 billion, making Lagos the state that leads the Sub-Saharan startup ecosystem in terms of ecosystem value and financing raised.

The closest competitors of Lagos, according to the research, were Nairobi and Cape Town, with startup valuations of $7 billion and $3 billion, respectively.

The position of the state in the top emerging startup environment in the globe ranged from 51 to 60.

Regarding cash raised, it also discovered that OPay’s $400 million Series C financing in August 2021 was the biggest deal in the sector, while Flutterwave’s $250 million Series D financing in February 2022 lifted the company’s valuation to about $3 billion.

The report’s findings also indicate that from 2021 to 2022, venture capital (VC) funding in the area decreased by 6%.

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Fintech accounted for 41% of all startup deals in the region between 2018 and 2022, making it the top-performing technology sector in the area.

According to reports, Nairobi is the largest fintech hub in the area.

According to the survey, Lagos is home to more than 400 tech companies, or 88% of all tech startups in Nigeria.

It also points out that the fintech sector, which accounts for 49% of all ICT companies in Lagos, dominates the ecosystem.

Startup Tech Company That Struck Biggest Deal

Also, based on data, 27.4% ($967.2 million) of the $3.6 billion in venture capital raised by African entrepreneurs in 2022 was invested in Nigerian startups.

Some of the Nigerian companies with the largest financing tickets are Flutterwave, Interswitch, Moore, TeamApt, and Ventures Platform.

The winner was Flutterwave, a unicorn in finance from Nigeria that raised more than $250 million in 2022.