Co-creation Hub (CcHUB), Bank of Industry (BoI), Venture Garden Group (VGG) and Omidyar Network (ON) teamed up to launch ‘CcHUB Growth Capital’ which will invest N1 billion to support ‘next generation infrastructure’ technology builders in Nigeria over the next two (2) years.
CcHUB Growth Capital will target existing ventures looking to scale their businesses across the country as well as make significant impact. With investment sizes of up to N30 million per venture, the Fund will look to lead seed funding rounds for ventures along with other co-investors. It will also work with banking partners to provide debt funding to appropriate businesses in order to diversify their funding structure.
According to Nigeria’s Bank of Industry Managing Director, Mr. Rasheed Olaoluwa who spoke at the launch, we are partnering with the CcHUB, Omidyar Network and the Venture Garden Group to provide this Fund, because “If Africa will catch on with the rest of the world in terms of development, we must leverage on technology”. Mr. Olaoluwa further stated that the investment was informed by the track record of Co-Creation Hub and the developmental impact of their existing portfolio.
Expanciating on ‘next generation infrastructure’, Chief Executive Officer of CcHUB, ‘Bosun Tijani explained that these are entrepreneurs building technologies that make public services smarter and connects them to citizens and/or smart technologies linking multiple public services together to make them more accessible to citizens.
The occasion also showcased some of the startups from CcHUB’s incubation program building next generation infrastructure businesses like
- LifeBank – a solution to build a smarter blood system in Nigeria by connecting hospitals with blood banks and galvanizing millions of Nigerians to voluntarily donate blood.
- Grit Systems who is currently testing its power monitor which helps corporates and individuals track consumption of electric power across multiple sources over the web or on mobile.
- Wecyclers talked about progress made over the past two (2) years in building a collections system that rewards individuals and organizations for parting with their recyclable waste which is in turn processed and sold to recyclers.
Criteria for ventures looking to access the fund include:
- Business should be generating revenue in a growth sector, look to raise a seed round of between N30 million to N90 million, have a strong team with track and have suitable valuation.
From January 7 2016, CcHUB Growth Capital will start taking applications from across the country via its website i.e. www.gc.fund.
In addition to the investment, The Fund will through its partnership with CcHUB’s Incubation team, provide Venture scaling support to investees.
This involves supporting founding teams to implement structure during the scaling phase of their development. Focus will be on building appropriate team structures (hiring quality for growth), efficient operational procedures and governance structures to sustain measurable growth in users, revenue and market traction.
Source: Source Capital Blog