SAFE Finance In Nigeria

Introduction

According to the African Venture Capital Activity Report 2022, seed stage deals continually comprise the largest proportion of venture capital volume in Africa. When categorized from sector specific level, financials were the titan of the ecosystem as the most active sector by both volume (32%) and value (44%), followed by Consumer Discretionary which drew 17% of deal volume. Overtaking Information Technology, the Industrials sector emerged as the third most active sector accounting for 16% of the total number of VC deals that took place in the period.

While most start-up companies look forward to structuring a Venture Capital (VC) deal, some understand that the company is not yet ripe for a VC deal. They also don't have any assets for debt finance, and they have exhausted "family, friends and personal finance" to build the start-up. So, they still need "one more" finance instrument to prepare them for the VC deal. It's always "one more" finance