The Lagos State Governor’s Special Adviser on Innovation and Technology, Tunbosun Alake, has said that a total of 107 tech startups operating in the state have attracted $750 million in funding so far this year.
Alake revealed this on Thursday at the opening of the 4th Art of Lagos (AOT) conference with the theme: ‘Accelerating Talent and a Smarter Lagos’.
While noting that the state has become the number one start-up capital in Africa, he said Lagos is now ranked 81st globally as one of the top hubs for start-ups. He said that Lagos is also number one in Africa in terms of the volume of deals that have been closed from 2019 to date.
Why investors come to Lagos: According to Alake, investors are flocking to the state not only because of its large population, but also because the state government has been deliberate in making the state investment-friendly. He said:
- “Investors come to Lagos because we have been doing a lot of things to encourage and make sure that the ecosystem is suitable for these investments. And Lagos is a place that investors love to come to, not just because of the size of the market, but also because of the potential return on their investments.”
More startups/investments needed: Despite the state’s record number of startups and the investment they continue to attract, Alake said the state needs more startups and funding to develop because of its unique challenges.
- “Lagos State is one of Nigeria’s main economic engines and as a result some 77 new residents from all over Nigeria migrate to Lagos every day. That is a huge challenge in itself. How do we manage this huge population with such a static land mass? We need to apply technology. And that’s why we need more start-ups and more investment in the state.” he said.
TOA 4.0: Speaking about the importance of the annual 2-day event that brings together technology stakeholders from around the world, Lagos State Deputy Governor Dr. Obafemi Hamzat said that prior to the event, the state has been able to encourage contributions from value creation that have allowed a better and deeper collaborative relationship with the ecosystem.
Addressing the participants in the event, he said: “With 25,000 online and offline attendee registrations this year, your participation has made this event one of the largest in Nigeria. The continued success of this gathering is a testament to the platform it provides for public and private sector stakeholders to co-create and drive value in this ecosystem.
- He added that since the first AOT meeting, the state has started the Lagos State Scientific Research and Innovation Council, a body made up of public and private sector professionals tasked with directly intervening in the ecosystem through funding.
- “The result to date has seen more than 60 startups receive funding of between $5,000 and $12,000 over the two years. This funding constituted some of the initial runway rounds for startups that have raised millions of dollars in funding. LASRIC provided many of these startups with their initial funding opportunities.” he said.
- He further stated that the business environment and open support for technology informed Sanwo-olu management’s increasing focus on innovation in a bid to drive value outcomes for the startup ecosystem. “The contribution of this administration is evident in the different implementations and initiatives contained in the first Lagos State Technology and Innovation Master Plan. The master plan contains multiple strategic pillars that cascade into multiple tactical initiatives.” he said.