Starting a business in Nigeria is no small task. From daily power outages to high costs of goods and services, everything seems to want to slow you down. But the dream of building something great still burns strong in the hearts of many young Nigerians. The biggest question many founders ask is: “How do I find money to kickstart my idea?”
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That’s where seed funding comes in.
Seed funding simply means the first official money that helps you grow your idea into a real business. It’s the money that “plants the seed” of your startup. In this article, we’ll break down how to find seed funding in Nigeria — using clear, simple language.
Let’s dive in.
What Is Seed Funding?
Seed funding is early money given to a business to help it start. It is usually used for things like:
- Building your product
- Renting a small space
- Paying your first few staff
- Marketing to get your first customers
The money may come from investors, grants, competitions, or even people who just believe in your idea. In return, they may ask for a small share in your company, or expect you to grow and repay later.
Who Gives Seed Funding in Nigeria?
Here are some common sources of seed funding in Nigeria:
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Angel Investors
These are individuals who invest their personal money in early-stage businesses. They are usually rich people or experienced entrepreneurs who want to support young founders. You can find them through networking events or online platforms like the Lagos Angel Network.
Tip: Don’t just ask for money — show your idea, your passion, and your plan. Most angel investors want to see that you’ve already done something before they support you.
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Startup Incubators and Accelerators
These are organisations that train, support, and sometimes give money to young startups.
Some popular ones in Nigeria include:
- CcHub (Co-creation Hub)
- Lagos Innovates
- Techstars Lagos
- The Nest
- Startupbootcamp AfriTech
Most of them offer small seed funding and access to mentors and office space in exchange for equity (a small part of your company).
-
Grants
Unlike loans, grants are free money — you don’t pay back. They are offered by governments, foreign organisations, or NGOs. They don’t take equity either.
Examples include:
- Tony Elumelu Foundation (TEF) — $5,000 grant
- YouWiN! Connect Nigeria
- SMEDAN matching grants
- Bank of Industry (BOI) youth programmes
Tip: Grants usually have strict rules and require good proposals. Make sure your application is clear, honest, and compelling.
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Friends and Family
Sometimes, the first people to believe in you are those around you. Even if they don’t have much, small contributions from 5-10 people can help you build your first product or get your first customer.
Be careful: Treat it like a real investment. Let them know how their money will be used and what they can expect.
How to Position Yourself for Seed Funding
Now that you know where to look, how do you make yourself ready?
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Have a Clear Idea
Don’t just say “I want to start a business.” Be specific. What problem are you solving? Who is your target customer? What is your product or service?
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Start Small
Before asking for money, try to do something. Create a sample, talk to potential customers, or even start with your savings. Investors love to see that you have “skin in the game.”
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Create a Simple Business Plan or Pitch Deck
This should include:
- Your idea
- Your market
- Your business model
- Your team
- How much you need and how you’ll spend it
Don’t make it too long. Just clear and easy to understand.
-
Build Relationships
Seed funding doesn’t always come from strangers. Go to tech meetups, join WhatsApp/Telegram startup groups, attend business events, talk to people on LinkedIn.
People fund those they know and trust.
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Apply, Apply, Apply
Many people complain there’s no money — but they’ve never even tried applying. Yes, rejections will come. But keep trying.
Apply for every grant, pitch competition, and accelerator you can find. Use Google. Use Twitter. Sign up to newsletters.
Mistakes to Avoid
- Overpromising: Don’t lie or exaggerate. Be honest about what your business can do.
- No team: Investors don’t like solo founders. Even if your co-founder is your cousin, show that you’re not alone.
- Spending carelessly: If you’re lucky to get funding, spend wisely. Don’t use it to buy a fancy office or car. Focus on growth.
- No follow-up: After networking, follow up with a simple message. Remind people about your startup.
Final Thoughts
The road to funding in Nigeria isn’t smooth, but it’s possible. Many Nigerian startups like Paystack, PiggyVest, and Thrive Agric started small — just like you. They found people who believed in them, worked hard, and stayed consistent.
Seed funding can be that spark that helps you go from an idea to a real business. But the seed won’t grow unless you plant it. So take a bold step today — start small, build something, talk to people, and keep showing up. Your big break may be just one pitch away.
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