In today’s startup ecosystem, many Nigerians have come to embrace the idea of entrepreneurship and being their bosses. This sudden startup boom has facilitated the need for incubators and accelerators to aid the funding of these startup scenes. It is commonly believed that incubators and accelerators mean the same thing as they are both involved in providing early funding for startups, although they have their differences.
Accelerators and Incubators play vital roles in Nigeria’s startup scene. Incubators help by providing shared office spaces, mentorship, and direct access to networking with professionals in the field. Accelerators, on the other hand, offer more intensive programs that come alongside benefits like funding, specialized training, and easy connections with the investors who matter.
The two models help Nigerian startups scale through the major challenges accompanied by businesses by providing practical assistance and guidance. You might be wondering if the roles of incubators, accelerators, and angel investors are the same, right? You will get to find out as we make progress.
It will be necessary to understand what this term entails and what makes it different from incubators. Accelerators help grow an already-established firm. Accelerator programs are usually predetermined within a specified duration, allowing individual businesses to work with a group of mentors within a few weeks to months to help develop their businesses and eliminate any issues with time.
The outstanding benefit of the startup accelerator program is the mentor network, which Is very important to Startup ventures. The role of accelerators in Nigeria’s’ startup scene is quite crucial.
Not many people might be familiar with the term incubators in this context. Startup Incubators help businesses provide capital and other secondary services required for the successful operations of the startup on the only condition that the criteria are met and proven attractive by the investors. Incubators have become an emerging popular way to raise funds for their Nigerian startups with ease.
Nigeria’s startup ecosystem is impressively making waves. It is a leading entrepreneurship hub, which can be attributed to the huge number of engaging international investors, the large population, and the increasing number of support organizations actively working in the ecosystem. This shows how significant incubators and accelerators are in Nigeria’s startup scene.
According to research conducted by Venture Finance in Africa, companies participating in Nigeria’s startup ecosystem support programs are 23% more successful in bagging investments and much more likely to generate new jobs. Interestingly, 76% of Nigeria’s startups are steadily creating jobs, and these jobs are created per age group. And 56% of the hired employees are between the ages of 12 and 35.
This can be considered a valuable contribution to Nigeria’s growing population and further propels the growth and development of the country’s startup ecosystem, making it easier for entrepreneurs to thrive. A significant progress indicator was discovered in the growth of average investments made by Nigerian ventures compared to last year’s study.
This year, an average amount of $93,651 was recorded. And this value is 22% higher than what was registered last year. What does this entail? Of course, it shows that the quality of ventured from Nigeria is improving over time despite the challenges encountered. With this energy, it is possible to get success stories that attest to this fact.
It has been known that startups usually face a lot of challenges, but incubators and accelerators are here to help. With the aid of these programs, Nigerian entrepreneurs are now being provided with guidance and mentorship that will enable them to walk through the path of challenges they encounter in the process of starting up a business. With direct access to experts in the industry, networking opportunities, and workshops, startups can be embedded in the pool of knowledge and ideas in different areas of the business.
As a business person, it will be much appreciated if you don’t limit yourself in any area. Your business can go as far as you can see if only you leave assumptions and put in the work. The shared office spaces can help foster collaboration and the exchange of ideas with individuals of like minds. This support and resources are important in enabling startups to stay above setbacks and augment their success levels. This remains an outstanding role of incubators and accelerators in Nigeria’s startups.
Networking and connections can do what money can’t do for startups. You should never joke around with this aspect of a business. Building a strong and reliable network will help your startup acquire access to resources, rare opportunities, and support.
Startups can get exposed to potential investors, mentors, and experts in the industry through strategic networking that comes alongside connections. In networking events and conferences, you can get the chance to form partnerships with individuals of like-minded. This will also allow any startup to link up with other entrepreneurs who face almost the same challenges. This is another major role of incubators and accelerators in Nigeria’s startup scene.
Startup accelerators help create standout business plans, financial projections, increased sales and marketing strategy, team-building, and much more. They can also assist the hiring team in developing a good hiring strategy and identifying the shortage of essential skills needed.
Incubator/accelerator: GIZ/DTC Nigeria; United Nations Population Fund (UNFPA) AfriLabs.
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Drug Samuel is the CEO of NorthWave, a fintech startup known for empowering people and showing them how to achieve financial freedom by inculcating premium saving habits with a community of friends, family, and colleagues. Samuel told FORBES AFRICA that the most recent incubation program he participated in was the six-month United Nations Population Fund (UNFPA) Incubation program implemented by AfriLabs, which is currently the GIZ/DTC Nigeria acceleration program.
He said he initially got an incubator when he attended a local startup event, where he learned a lot about incubators and accelerators from fellow entrepreneurs. Samuel decided to belong to one because he envisioned that these programs could escalate his chances of success. He went on to tell Forbes Africa that the startup program offered his startup a wide dimension of benefits. This is the role of incubators and accelerators in Nigeria’s startup scene. He received a product development fund and also participated in networking events.
Incubator/accelerator: Pitch2Win
Tyms Africa is an accounting and Finance automation Platform that helps small and mid-sized businesses in Africa embrace cost-saving and rapid scaling. This platform was co-founded by Ibrahim Adepoju and Chinenye Ochem and also provides metrics, reports, forecasts, and customer management features.
Adepoju happily shared with FORBES AFRICA that they raised over $100,000 within two weeks after the event. He disclosed that it was the fastest raise he and his team had ever closed. Adepoju went ahead to emphasize the need for other startups to participate in the event, and showcase themselves and their products, he said they don’t necessarily have to win the grand prize because there’s still much to gain from the world just watching. Have you seen the distinct role of incubators and accelerators in Nigeria’s startup scene? Just too numerous to list out.
In Nigeria, the role of incubators and accelerators In the startup scene cannot be completely ignored. Most startups have benefited from them in one way or another. Be open to trying new things out. You could either win or learn. Either way, you aren’t losing.
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