Venture Capital and Private Equity Landscape for Nigerian Technology Startups: An Investor and Entrepreneur Perspective

This study examines the venture capital and private equity investment landscape for technology startups in Nigeria from the perspectives of both investors and entrepreneurs, analysing deal flow dynamics, investment criteria, due diligence practices, and the structural gaps that limit the efficient matching of risk capital to high-potential ventures. Nigeria attracted record levels of startup investment in 2021 and 2022, followed by a significant pullback, and understanding the underlying dynamics of this investment landscape is essential for both entrepreneurs seeking growth capital and policymakers seeking to develop a sustainable venture capital ecosystem. The study employs a qualitative methodology, conducting semi-structured interviews with 12 venture capital investors active in the Nigerian market and 15 startup founders who have raised or attempted to raise formal venture investment. Interview data were analysed using thematic coding, with investor and entrepreneur perspectives compared systematically. Findings reveal significant information asymmetry between investors, who prioritise business model validation, founding team quality, and unit economics clarity, and entrepreneurs, who frequently overestimate the weight placed on technology originality and underestimate investor focus on market size and monetisation path. VC investors consistently cite the scarcity of Series A-ready companies as the primary constraint on deployment, rather than capital availability. Recommendations include structured programmes to develop investment readiness among high-potential Nigerian startups, and the expansion of pre-seed patient capital through government venture fund-of-funds structures. Keywords: venture capital, startup investment, Nigeria, technology ecosystem, entrepreneur-investor dynamics.