Aduna Capital, an African venture capital firm, has opened a $20 million fund with an emphasis on investing in the startup ecosystem in Northern Nigeria.
Aduna Capital’s General Partner Surayyah Ahmad, who co-manages the fund alongside Sanusi Ismaila, expressed excitement about the effort and emphasized her zeal to find and cultivate extraordinary prospects in the region.
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With a plethora of experience and a proven track record of accomplishment, Surayyah Ahmad is the venture’s experienced founder. Ahmad created YDS Online, an eCommerce firm that was later bought in 2022. As such, Ahmad has an in-depth understanding of the potential and difficulties that a startup faces.
Sanusi Ismaila, her co-founder, is a prominent figure in Northern Nigerian technology innovation. He founded Colab, the biggest innovation hub in the area. Colab has played a crucial role in developing tech talent and businesses, helping companies like Sudo and Payant come to be.
As part of its investment strategy, Aduna Capital invests 55.5% of its money in Northern Nigerian companies, taking advantage of the country’s expected expansion to become the fourth largest in the world by 2050.
By focusing elsewhere, Aduna Capital hopes to transform the investment landscape. Currently, Lagos is home to more than 80% of Nigerian startups. Acknowledging the disparity in the allocation of investments and the obstacles encountered by female entrepreneurs, Aduna Capital aims to close these divides and serve as a driving force behind change in Northern Nigeria.
With intentions to invest in more than 50 enterprises in these early stages, the fund will focus on pre-seed and seed-stage firms. In order to fill the angel investment gap in the area, Ahmad said that investments between $50,000 and $200,000 will typically be made, and the company is willing to occasionally write cheques to angel investors.
Aduna Capital plans exit investments at the Series A stage in recognition of the limited number of exits available in the market. Ahmad did clarify, though, that a portion of the portfolio companies—roughly 20%—would be kept around in order to make room for future investments.
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Ahmad stated that a significant amount of the secured assets is prepared for deployment, indicating that the fund is prepared to start making investments, even though specifics regarding the percentage of secured funds are still unknown. Aduna Capital will take a novel approach in investigating substitute models, such as profit-sharing agreements, to satisfy local investors who are uneasy with the conventional venture capital model.
The ultimate goal of Aduna Capital is to promote economic growth, inclusivity, and innovation in Nigeria and abroad in order to leave a lasting impression on the African continent.
The fund intends to allocate investments to exceptional founders throughout the nation and the wider African continent, all the while keeping a sharp emphasis on the North. Interestingly, part of the strategy is a commitment to reach 50% female representation in the companies that get funding.
