Ecosystem Building Through Local First Checks

A Response to Iyinoluwa Aboyeji

A recent message on Linkedin by Iyinoluwa Aboyeji giving insights into the state of Africa’s startup ecosystem resonated so deeply with me I had to share my thoughts in this article. He asserts that the gap in our ecosystem isn’t the absence of US venture capital; it’s the dwindling presence of local accelerators, angel networks, and first-check investors who provide the foundational support for startups. I agree with 100% that the key to sustainable growth lies in strengthening the local pipeline with early-stage funding and mentorship. This is where I believe we must refocus our collective efforts, particularly in clusters like the one we’ve built in Lagos.

At my home base TVCLabs in Yaba, Lagos — the heart of Nigeria’s tech ecosystem — our MentorPitch program is specifically designed to bridge the early-stage funding gap. Since launching in 2021, we’ve facilitated seven investments, all in startups at the nascent stages of their journey, but each demonstrating the potential to scale and impact. Yaba is not only home to TVCLabs but also to the Co-Creation Hub (CcHub), which continues to be a cornerstone of innovation under the leadership of Ojoma Ochai after the departure of Bosun Tijani to serve the nation. As both Collaborator -in-Chief at TVCLabs and Chairman of the Board at the CcHub Syndicate, I have seen firsthand the transformative impact of collaboration between angels and startups, especially when guided by a structured approach.

Collaborative Foundations in Lagos

The strength of Lagos’ ecosystem lies in its spirit of collaboration. I remain an active member of the Lagos Angel Network (LAN) which is now under the executive directorship of Dr. Solomon King who continues to connect startups with local investors like us committed to nurturing homegrown innovation. LAN’s amazing Board of Governors is led by Yemi Keri of Rising Tide Africa (RTA) who Chairs that Board. Similarly, my long-standing relationship with Dr. Wole Odetayo of Wennovation Hub reflects how partnerships are key to building resilient ecosystems. Recently, the Ekiti Innovation Week, showcasing how innovation and angel investment can drive growth even beyond Lagos brought the both of us together with Iyinoluwa.

The work of clusters like ours in Lagos offers a template for what can be achieved nationwide. For example, my dear friend Uche Aniche, who is the Convener of #StartupSouth, is creating a vibrant ecosystem in southeastern Nigeria. With the recent announcement of a stellar joiners Kalada Apiafi, Chukwuemeka Afigbo, and Isioma Utomi ✨ #StartupSouth exemplifies the kind of localized hubs we need to replicate across the country. These clusters demonstrate the power of local community in fostering innovation, providing mentorship, and deploying capital.

MentorPitch: A Structured Pathway for Early-Stage Startups

The MentorPitch program embodies the principles Iyin advocates: a systematic approach to funding and mentoring startups at the earliest stages. Guided by the POEM Framework®, which is encapsulated in my book “Investment Worthy Startup” published last year, the program helps startups tell their story, articulate their vision, analyze their target markets, refine their customer acquisition strategies, and build scalable business models. Founders work through key questions such as:

• Who really are your customers, and how do you acquire them cost-effectively?
• What is your business model and how will it scale?

The program doesn’t stop at the startups proposition; it delves into the organizational structure, examining the people, processes, and technologies that enable startups to deliver their offerings. It also critically looks at the startups capital needs from MVP to Series A focusing on how expenses are deployed to generate revenue for returns while making an impact. This comprehensive approach ensures that startups are not only investable but also positioned for sustainable growth.

The Role of First Checks in a Resilient Ecosystem

One of the MentorPitch program’s core aims is to provide that critical first outside check to the startup. We focus on pre-seed funding because it’s at this stage that startups need the most support to prove their concepts and gain traction. By aligning with local angels, we help startups navigate the journey from initial idea to product-market fit, emphasizing profitability, capital efficiency, and impact.

This aligns perfectly with Iyin’s call for local angels and accelerators to step up. The absence of sub-$1 million funding rounds has created a bottleneck in the pipeline, leaving startups struggling to progress. Programs like MentorPitch fill this gap by de-risking early investments and creating opportunities for angels to engage meaningfully.

Scaling the Lagos Model Nationwide

The collaboration we see in Lagos — between the likes of TVCLabs, CcHub, LAN and others — shouldn’t be an anomaly. It’s a model that can and should be replicated across Nigeria. Imagine clusters like Yaba springing up in every region, each with its own hubs, angel networks, and accelerators, fostering local innovation and driving regional economies. #StartupSouth is a great example of what’s possible when local ecosystems are empowered to lead.

For this vision to become a reality, we need to commit to building localized solutions that support startups in their earliest stages. These clusters will not only attract international collaboration but also ensure that African startups remain grounded in local realities while scaling globally.

A Call to Action for Local Angels

As Iyin aptly points out, we cannot rely on foreign capital to solve the challenges of our ecosystem. The future of African innovation lies in the hands of local angels, accelerators, and first-check investors. It’s up to us to create the structures that nurture early-stage startups, provide the necessary funding, and offer the mentorship they need to thrive.

The work we’re doing in Lagos through MentorPitch and the broader ecosystem is proof that a local-first approach works. By focusing on foundational support, we are creating a pipeline that’s not only resilient but also capable of driving transformative change. Let’s replicate this model across Nigeria, fostering innovation, collaboration, and scalable growth in every region.

Together, we can build the startups that will shape the future of Africa. It all begins with that first check (or cheque if you prefer😀).

I trust that helps!