Aduna Capital, a venture capital fund, has revealed a $20 million investment fund dedicated to supporting Africa, particularly focusing on the underserved northern region of Nigeria. The initiative aims to empower early-stage, technology-enabled startups in the area. The decision to target this region is based on a 2021 report by the National Bureau of Statistics, highlighting the substantial untapped market with 128 million people in northern Nigeria, surpassing the combined market potential of Ghana and Kenya.
Nigeria is projected to become the world’s fourth-largest nation by 2050, with significant contributions from the northern region. The funding from Aduna Capital will be directed towards supporting innovative startups, particularly those in agriculture and education.
According to research by the Northern Founders Community (NFC) in 2023, startups in these sectors have generated over $1.2 million in bootstrapped revenue each across the region. Surayyah Ahmad Sani,
General Partner of Aduna Capital, emphasized the fund’s goal to create an ecosystem unlocking the potential of entrepreneurs, fostering innovation, and accelerating sustainable development across the continent.
Aduna Capital is committed to supporting female entrepreneurs, with 50% of its investments allocated to female-led startups. Sani referred to a 2021 European International Bank study showing that female executives provided a return of $2 for every $1 invested in them.
Sani expressed confidence in sharing her knowledge and experience in fostering startups and promoting IT sector growth, having overseen a $2 million investment for African startups in the angel and pre-seed stages. Sanusi Ismaila, General Partner of Aduna Capital, clarified that the investment’s focus extends beyond Nigeria’s northern area. He outlined a pan-African strategy, allocating 25% of the funds to startups in the rest of Nigeria and another 25% to startups across Africa.
Ismaila, founder of Colab, Kaduna State’s first innovation hub, highlighted the goal of achieving a 5–10x return on investment while maintaining a balanced approach between profitable returns for investors and meaningful investments. Colab, being a significant source of technical talent in northern Nigeria, has produced alumni working for multinational firms. Ismaila pledged to contribute his ideas and expertise to catalyze growth in the African digital startup industry, positioning Aduna as a powerhouse in discovering, investing in, and fostering the continent’s next generation of tech leaders.