CcHUB Growth Capital has put money in 4 startups so far, more to come

by | Oct 31, 2018

The Co-Creation Hub (CcHUB) Growth Capital (GC) Fund has invested in four startups, with two others at the final stage before investment, CcHUB founder and CEO, Bosun Tijani confirms. And by the time the fund exhausts what’s currently in its purse, it should have invested in up to eight startups.

Tijani says the mandate of the fund is to invest in Nigerian startups solving local infrastructural problems. Apparently, GC couldn’t invest in the first company it wanted to put money in because it’s an American company — registered in the US.

Nigerian minister of communication 18 of 45

Bosun Tijani, CcHUB CEO

The reason why the fund is based locally is to ensure that there’s an incentive for the government to facilitate the growth of the startup scene. Tijani believes the fund would be of great impact to startups that can’t raise money in America.


Suggested Read: Everything you need to know about the CcHUB’s ₦1b Growth Capital Fund

Advertisement


According to Tijani, the GC fund contributed $75,000 of the $200,000 raised by LifeBank. The deal happened in December 2017 but was announced in January 2018. In March 2018, Riby — a platform that automates cooperatives — got $100,000 from the GC fund.

The most recent deals by the fund include $150,000 in Delivery Science and $60,000 in Edves in September and October, respectively. Delivery Science is an enterprise software as a service provider while Edves provides school management solution.

Less than two weeks ago, the investment metre on the fund’s website indicated a ₦57.6 million withdrawal, leaving it with a balance of ₦105.4 in its coffers. Our best guess is that this recent deduction was intended to facilitate investment in Edves and one or two of the investees at the final stage of their investment deal.

While the GC Fund had an initial target of ₦1 billion, it now has its eyes on $20 million (about ₦7.27 billion) for its next round of investments.

In response to why the fund didn’t meet its initial target, Tijani affirms that there has to be proof that the previous investment is being put to use.

“You really can’t go to the market without showing what you have already done.”

With the new $20 million investment target, Tijani hints at the likelihood of increasing the ticket sizes of single investments. Already, two of the investments made by the GC fund this year are individually higher than the original ₦30 million ticket bracket — Riby got ₦36 million while Delivery Science got ₦54 million.

The good news for Nigerian startups is that with the new $20 million target, the fund can co-invest up to $500,000 in startups.

Advertisement

Yinka Awosanya
Yinka Awosanya

Mobile & African Tech Enthusiast │ Data Analyst │ Music

On January 22, 2022, be part of the largest gathering of innovators, startup founders, thinkers, programmers, policymakers, and investors in West Africa. Register free.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Recent News

Subscribe to Techpoint Digest!

A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!

Please check your email to confirm your subscription.

Subscribe to Crypto Explorer

A monthly series featuring in-depth analysis on the cryptocurrency sector in Africa

Please check your email to confirm your subscription.

Subscribe to The Experts

A bi-weekly where tech career specialists take us on their journey from newbie to expert, and how they became successful in the industry.

Please check your email to confirm your subscription.

Subscribe to Founder's Table

A monthly series, where we catch up with founders in the startup ecosystem, learn about their failures, successes and a few tricks of the trade

Please check your email to confirm your subscription.

Copy link
Powered by Social Snap