FATE Foundation said it is set to address finance constraints being faced by new startups, such that they can access finance with ease.
To this end, the foundation has partnered the Dutch Entrepreneurial Development Bank to address access to finance challenges impeding the growth of young entrepreneurs in Nigeria.
Both organisations at a capital unleashed roundtable event held in Lagos recently, said, the move represents a significant milestone in fostering innovation and entrepreneurship in Nigeria, especially, in today’s rapidly evolving world, where young entrepreneurs are the driving force behind innovation, economic growth, and sustainable development.
The executive director, FATE Foundation, Adenike Adeyemi said, the objective of the event was to initiate and develop ideas for new financial products that can bridge the early-stage financing gap, ranging between 50,000 and 250,000 Euros.
He maintained that the initiative comes as a follow-up to the Orange Corners Innovation Fund (providing finance up to 50,000 euros) and finance provided via FMO subsidiaries (starting from 250,000 euros), both Dutch initiatives in Nigeria.
Stating that, together with stakeholders from the startup ecosystem they touch on policy and regulatory reforms and design of innovative financing products, he said, he will explore collaborative solutions to address access to finance challenges.
Adeyemi pointed out that, despite the vibrant entrepreneurial landscape, many startups struggle to secure the necessary funding to scale their ventures beyond the initial stages.
“Although Nigeria is the most popular investment destination on the continent, access to finance remains a significant barrier for many budding entrepreneurs – particularly in the pre-commercial phase. This lack of growth capital impedes economic growth, entrepreneurship, and innovation across various sectors,” Adeyemi noted.
The event builds upon the success of the Orange Corners incubation and acceleration programme and the Orange Corners Innovation Fund, implemented in Nigeria since 2019 and 2021, respectively.
Till date, Orange Corners has supported the development of nearly 200 youth-led enterprises, supporting the creation of around 500 jobs in Nigeria.
However, there is a recognised need for continued support beyond the initial stages of business development.
She added that according to a recent survey among Orange Corners alumni indicated that although they have collectively raised over one million euros, less than 20 per cent of participants felt they had sufficient access to finance to scale.
Also speaking, the minister for Trade and Development Cooperation of the Kingdom of The Netherlands, Geoffrey van Leeuwen, said young entrepreneurs’ ideas and ventures hold the key to addressing societal challenges and creating opportunities for a brighter future, adding that, to turn their innovative ideas into sustainable, profitable enterprises, access to finance is key.
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