January was a busy month in the world of tech. So far, Nigerian startups have raised above $40 million in disclosed funding. Although it is not a bad start by any measure, it is just $2 million more than they had raised at this same time last year.
Investments in Nigerian startups dropped by at least 69% as funding plateaued after covid-19 hit most countries. In the absence of robust vaccine distribution plans by the Nigerian government, it is impossible to tell whether there will be a full recovery this year.
That said, we expect the numbers to look better this year. A strong fundraising performance in Q1 will signify a soothing of investor fears and portends good news for the ecosystem.
Update your CVs and practice your interview drills. Because, "once the fundraising starts, the hiring follows".
Something-You-Should-Know:Between 2000 and 2020, Nigeria experienced cumulative inflation of over 1000%.
This figure is important because it shows you just how much Nigerians have lost in earning power, over the last two decades.
Without quick, far-reaching economic reforms, the downward trend is bound to continue.
As a team, we have been trying to figure out how to protect ourselves and our audience against inflation. So, last year, we researched and curated seven ways you can beat inflation in Nigeria.
📊 Piggyvest and Carbon release teasers of their 2020 performance
So far in 2021, we have seen a good number of Nigerian startups publish their year-in-review. Not to be outdone, two of Nigeria's biggest fintech players released highlights of their performance over the coronavirus-impaired year.
In a message to its users on Friday the 30th, Piggyvestrevealed that it had paid out over ₦95 billion ($249 million) to users in 2020.
Carbon's highlight was a bit more detailed than Piggyvest's. The lending fintech revealed that it processed over ₦96.5 billion ($253 million) in transactions and disbursed over ₦25 billion ($66 million) in loans.
Both companies recorded strong performances during 2020 per their reports. If their performances keep growing strong, you can bet on at least one of them reaching unicorn status soon.
Did the bottom-right corner catch your eye? 😐
💸 Gumroad CEO cuts check for Cowrywise's $3 million raise
For a while now, Silicon Valley has been casting glances at Africa as its next favourite investment destination. 2020 might just be the year it dives into the Sub-saharan oasis.
Gumroad CEO and former Google employee, Sahil Lavingia, was one of the investors in Cowrywise's pre-series-A raise of $3 million. The fintech company is looking to expand its userbase with the recent investment.
Perhaps, the most interesting thing about Cowryrise's raise was that Sahil reached out to the startup first. In a tweet, Sahil revealed how he reached out to Cowrywise via Twitter to ask if they were raising.
