The Venture Capital
Advocacy Summit, the first of its kind in Nigeria that will bring together all
the critical elements that could facilitate the entrenchment of the Venture
Capital Culture in the country will hold between 28th and 30th June, 2016
at the Eko Hotel, Victoria Island, Lagos.
The Summit being
organised by Alfe City Company Limited with the support of the Senate Committee
on Trade & Investment and the House Committee on Commerce will feature the
maiden introduction of the concept of venture capital and provide an opportunity
for interaction with international experts and seasoned investors.
According to Mr Soji
Adeleye, Chief Executive Officer, Alfe City Company Limited, the organisers,
“To say that Nigeria needs a thorough re-engineering at the moment would be an
understatement.
The total collapse of
the crude oil sector in recent months is a reminder if we need one that the
over-reliance on that sector was short-sighted in the extreme. Investment in
the people on the other hand is the only risk free investment as they will always
be there hence organic growth of the people’s sector – the private sector
provides an insurance for the future. The bottom-up growth –invention,
innovation, imagination, creativity; attributes Nigerians are renowned for.
“Venture Capitalism
offers Nigeria and its universally acclaimed entrepreneurial people a new
vehicle that could turn that creativity into economic power.”
He said the
endorsement of the summit by the National Assembly was crucial as the
entrenchment of the Venture Capital culture in Nigeria would require
legislative underpinning to guarantee the safety of investment of investors.
In the Senate
endorsement of the summit, Senator Fatimat Raji Rasaki, Chairman Senate
Committee on Trade and Investment said, “We share the principle and objectives
behind this very laudable program and commend it to all stakeholders across the
country.
“We hereby convey our
commitment to work with you and other stakeholders for the success of the
summit and subsequently perform our legislative responsibility to ensure a
successful entrenchment of venture capitalism culture in Nigeria.”
Similarly, the
Chairman, House of Representatives Committee on Commerce, Rt Hon Sylvester
Ogbaga said the committee considered the summit’s objectives as very laudable.
“I wish to therefore
convey the decision of the committee to collaborate with Alfe City Company
Limited in that regard,” he said.
On the participation
of the state governments, the Alfe City boss said, “For the economic growth of
a federation like Nigeria to be successful and sustainable, federating unit’s
governments must be seen as caterers for the Oasis that must converge for the
national economy to prosper.
“State governments
must necessarily pursue economic policies that are conducive for private sector
investment. Universities and Colleges of Technology environments must
essentially be supported to breed entrepreneurs that could rely on venture
capital to translate their inventions and creativity into economic power.”
On why has Nigeria
been missing from the Venture Capital space over the years, he said, “There are
limited private equity activities in the financial sector of the country
primarily geared towards established entities that are seeking foreign
investment. It is a niche service whose clientèle is so defined.
To a considerable
degree Nigeria’s absence from the global venture capital space is directly a
consequence of the instability of the economy. For instance the unpredictable
nature of our foreign exchange regime means that dealing with serious international
investors is a considerable.
“The United States of
America is the predominant exponent of venture capitalism in the world.
As matter of fact, it is impossible to imagine the American economy without
venture capital. Most of the global brands like Google, Intel, Microsoft and
lately Uber all owe their emergence to venture capital. It is that
initial fund that turns an idea, a dream to products and services that we all
now recognise.
“According to the US
National Venture Capital Association, 11% of private sector jobs in the USA
come from Venture-backed companies and venture-backed revenue accounts for 21%
of US $18 Trillion GDP (2015).”
On the expected
benefits of the Venture capital/summit to Nigeria, he said it will open up a
new avenue for turning ideas to products.
“The Venture Capital
ecosystem will create jobs, know-how that at the moment does not exist because
it will be a new beginning for a lot of people and a lot entities,” he said.
“On the whole, the
summit itself would be unique in setting and result as the event would mark the
onset of an advocacy that promises to transform the entrepreneurial landscape
of Nigeria forever.”
The summit objectives
include to Advocate and spearhead the culture of venture capitalism in Nigeria;
Open an avenue for translating Nigerians’ legendary creativity and
entrepreneurship to vital economic power; Bring all stakeholders together to
highlight how venture capital could be the missing link in Nigeria’s struggle
to build a diverse and sustainable economy; Establish a Register for practicing
and prospective venture capital operators in Nigeria; Create the machinery for
an annual venture capital event as a vehicle for entrenching the culture of
venture capitalism in Nigeria
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