Ventures Platform closes $64 million, elevating Nigerian government as investor

Ventures Platform has secured a $64 million first close for its new $75 million fund, drawing significant backing from the Nigerian government in a move that tests the viability of state capital in a tech ecosystem littered with failed government initiatives.

Nigeria’s involvement came through the Investment in Digital and Creative Enterprises (iDICE) program, which is a first-of-its-kind. iDICE is a federal government initiative designed to promote investment in Nigeria’s digital and creative sectors. Launched in 2023 with $617.7 million in funding, it is backed by the Federal Government of Nigeria (through the Bank of Industry), African Development Bank (AfDB), Agence Française de Développement (AFD), and the Islamic Development Bank (IsDB). The investment in Ventures Platform marks its first deployment into a private venture fund. Another first.

The reliance on state money is a high-stakes bet. This is because of a few negative connotations of corruption; however, recent high-profile returns in the ecosystem like Oui Capital and SilverBacks Holdings have defied all odds. With more investors pouring into the West African nation for secure investment, alongside a successful $2.35 billion Eurobond issuance, optimism is high.

“We are delighted to have iDICE as an LP,” said Kola Aina, Founding Partner at Ventures Platform. “They inspire and give confidence to foreign LPs. They also have context into the markets, and so they can be very helpful to the GP, to the fund manager, and the portfolio companies in the local markets.”

Aina explained that having a quasi-government LP could also help unlock regulatory flexibility. “We hope to be able to lean on them for sort of regulatory issues, issues that are multi-agency and multi-government agency,” he said.

In a clear response to the new market discipline, Ventures Platform is tightening its own investment thesis. The pan-African fund will pivot from its earlier, smaller-check strategy to take more significant Series A investments, while strengthening its activities in Francophone Africa and accelerating expansion into North Africa.

The firm’s fund II will focus on what it deems critical infrastructure, targeting fintech, healthtech, agritech, edtech, and AI. This more disciplined approach suggests a recognition that the high-growth, “blitz-scaling” era is over, replaced by a demand for clear ownership and a tangible path to profitability.

Dr Olasupo Olusi, MD/CEO of the Bank of Industry, added:

“By investing in Ventures Platform’s Fund II, which serves as iDICE’s Technology Equity Fund for Nigerian startups, we are deepening the Federal Government’s objective of upscaling the Nigerian technology and creative sectors by catalysing strategic investments in high-growth, technology-enabled enterprises and the innovation ecosystem.”

This raise establishes Ventures Platform as a significant player in the new, constrained African tech landscape, but it also presents a critical test: whether a private fund, supported by state capital, can secure returns and contribute to the government’s declining revenues.