Obtaining Finance for Creative Ideas in Nigeria Without Collateral
Are you someone who has a creative idea but requires funding for it?
Are your ideas ICT related? Are you someone who has been looking for how to finance your ICT business through venture capital? If it is, then this information is for you.
The federal government of Nigeria has initiated a $15 million ICT venture capital fund that will be used to finance creative idea until maturity.
What is a Venture Capital?
According to Wikipedia a venture capital is a financial capital (money) provided to early stage, high potential, high risk, growth startup companies.
For those interested in tapping into this resource gold mine, collaterals are not required. This much was confirmed by the Minister of Communication Technology, Mrs. Omobola Johnson. According to her the only requirement is a commercially viable idea that would be funded by the Federal Government through its anchor investor the National Information Development Agency (NITDA) to a tune of $3.6 million while other investors from the private sector are to pool in $12.4 million to complete the funding.
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For those whose ideas would be supported by the venture capital they would have to sell part of their company when it becomes viable inform of IPO so that the investors can be able to recoup their investment
According to Omobola the fund would be managed by Independent Fund Mangers that will work with an incubator team to identify viable projects that can be funded.
Through this, Nigeria hopes to develop the ICT sector to rival that of South Africa. For those interested in tapping into the venture capital they should contact NITDA to submit their proposal.
What do you think about the Government idea of funding ICT startup companies through the institution of this fund? Will it transform the ICT sector of Nigeria? Would this be different from other funds since the fund would be managed by private individual? I will love to have your say?