Sage Grey's Runsewe highlights funding gap for Nigerian startups

Temitope Runsewe, Managing Director and Chief Executive Officer of Sage Grey Finance Limited, warned that Nigerian startups are encountering a significant funding gap between early-stage investments and the larger capital required for scaling. Investors are increasingly selective, seeking evidence of revenue growth and a credible path to profitability.

This shift has created a “missing middle,” where startups can access small seed investments or large institutional capital but struggle to secure the necessary financing to bridge the gap between these stages. Runsewe noted that while businesses do not need to be profitable before raising capital, they must demonstrate a credible route to sustainable growth.

He emphasized that local venture capital funds, private equity firms, and financial institutions like Sage Grey play a crucial role in providing the patient capital needed for startups to progress. The funding environment may encourage founders to focus on building viable businesses and managing costs effectively, rather than relying solely on fundraising.