Nigeria’s tech startup scene is facing a critical juncture. A confluence of macroeconomic pressures and funding contractions has led to a worrying trend: the rapid shuttering of startup accelerator programmes, vital nurseries for nascent businesses. As entrepreneurs grapple with soaring inflation, a volatile national currency, and a climate of economic uncertainty, the support infrastructure they rely upon is simultaneously eroding.
The latest blow came with the scaling down of 54 Collective, a prominent accelerator that had previously backed a significant cohort of Nigerian startups. The move, announced last month, follows the withdrawal of the Mastercard Foundation, a cornerstone investor in 54 Collective’s recently launched $100 million fund. This development echoes the shockwaves sent through the ecosystem in November with the closure of the ARM Labs Lagos Techstars Accelerator. Launched just two years prior with considerable fanfare as a partnership between Nigerian asset manager ARM and global powerhouse Techstars, the programme had promised up to $120,000 in funding and invaluable mentorship to participating ventures.
These closures are not isolated incidents. Accelerate Africa, another frontline accelerator, is still navigating the fallout from the cessation of USAID funding, highlighting the precarious reliance of many local programmes on international aid. The cumulative effect is a palpable sense of anxiety within Nigeria’s burgeoning tech community, leaving a significant void in the crucial early-stage support system.
It is into this breach that Antler, the global venture capital firm known for its prolific seed-stage investment activity, is stepping. Announcing its arrival in Nigeria, Antler is launching a Lagos-based cohort programme in June, signalling a significant injection of confidence into a beleaguered ecosystem.
Anil Atmaramani, a Partner at Antler, notes the overwhelming initial response to their call for applications. “The response has been incredible,” he stated, revealing that over 1,000 founders applied within a week of the announcement. This deluge of applications underscores the pent-up demand for early-stage support and the continued entrepreneurial drive within Nigeria, even amidst the prevailing headwinds.
Antler’s model, as outlined by Atmaramani, targets “day zero founders” — individuals with deep industry expertise ready to build ventures from the ground up. The firm emphasizes a sector-agnostic approach, welcoming both “tech and tech-light innovation” focused on solving tangible problems with scalable solutions. Interestingly, Antler is also open to applications from startups with existing products, suggesting a flexible approach tailored to the diverse needs of the Nigerian market.
Antler’s entry into Nigeria is not without precedent. The firm has been actively expanding its footprint across Africa. Antler Nairobi, for example, announced earlier last year a $2 million investment plan targeting ten East African startups, with individual investments reaching $200,000. Having closed its East Africa fund at $13.5 million in 2022, exceeding its initial target, Antler has demonstrated a tangible commitment to the continent’s early-stage tech landscape. Globally, Antler boasts a portfolio of over 400 companies across diverse industries, underpinned by a promise of follow-on funding up to $10 million for promising ventures.
Whether Antler’s arrival can truly fill the void left by the recent accelerator programme closures remains to be seen. The firm’s established track record and global network offer a potentially vital lifeline for Nigerian startups struggling to navigate the current economic turbulence. However, the underlying macroeconomic challenges — inflation, currency instability, and funding scarcity — persist. Antler’s success will likely depend not only on its programme’s efficacy but also on the broader resilience of the Nigerian economy and the continued dynamism of its entrepreneurial spirit.
For now, Antler ’s commitment represents a significant bet on the long-term potential of the tech ecosystem in Nigeria. As the Lagos cohort prepares to launch in June, the industry will be watching closely to see if this global player can indeed provide the much-needed spark to reignite Nigeria’s faltering startup accelerator landscape and bolster its ambitious founders.
For more information, visit: https://www.antler.co/residency/nigeria