Understanding Startups — What Do They Mean?

When thinking of startups, one’s mind often drifts to Silicon Valley, a land of hoodie-clad founders pitching billion-dollar dreams. But as you know, the startup revolution is no longer confined to California. It has rippled across the globe, making significant waves in places like Lagos, Tel Aviv, and Kuala Lumpur. Nigeria, in particular, has had its own share of these entities, driven by necessity, youthful energy, and a unique blend of ambition and ingenuity.

Take Flutterwave, for instance. Founded in 2016 by Nigerians Olugbenga Agboola, Iyinoluwa Aboyeji, and Adeleke Adekoya, the company sought to address Africa’s fragmented payment systems. Today, Flutterwave facilitates seamless transactions across the continent and beyond, and it boasts a valuation exceeding $3 billion. Its rise illustrates how startups in Nigeria are increasingly built to solve real, systemic challenges, be it financial inclusion, logistics, or access to education.

The term “startup” is typically used to describe private companies in their early stages of operation that focus on innovating new products or services to meet a market gap. Unlike other types of new businesses, most startups have explicit goals of scaling and growth and often seek to disrupt an existing market or industry. To achieve this, they often must raise significant outside capital.