Google

Google-backed startups across Africa have raised over $1 billion in funding while recording a survival rate of over 90%, performing better than the overall startup ecosystem, where most early-stage ventures fail within their first five years.

Folarin Aiyegbusi, Google’s head of Startup Ecosystem for Africa, disclosed this on Thursday during a press briefing at the company's FoundersConnect event in Lagos.

He said the funding was raised by startups that have participated in Google's accelerator and startup support programmes since 2017.

According to Aiyegbusi, the total includes equity investments, debt financing and non-dilutive funding secured by startups that have benefited from Google's ecosystem initiatives.

He noted that Nigerian startups account for the largest share of companies supported across Google's various accelerator cohorts, adding that more than 300 startups have benefited from the programmes across Africa.

Google said its support for African startups began with the Launchpad Accelerator programme in 2017 and has since expanded to include initiatives such as the Google for Startups Accelerator Africa, Google for Startups Black Founders Fund, Women Founders Accelerator and AI First Accelerator.

Aiyegbusi acknowledged the high failure rate among startups across Africa but said companies that have gone through Google's programmes have consistently performed better.

He attributed the higher survival rate to the mentorship, technical guidance, training and product resources provided through Google's accelerator programmes rather than direct financial investment.

Aiyegbusi stressed that Google does not take equity or seek financial returns from startups participating in its programmes.

Speaking on the slowdown in venture capital funding across Nigeria and the rest of Africa, Aiyegbusi said the decline reflected a global investment trend rather than challenges unique to the continent.

He explained that investors became more cautious after the post-pandemic funding boom, forcing startups to focus on building sustainable businesses with stronger fundamentals.

He added that investor attention has shifted from traditional sectors, particularly fintech, to startups integrating artificial intelligence into their products and operations.

According to him, companies that survived the funding downturn are now beginning to attract new investor interest as the market gradually recovers.

Aiyegbusi also said AI has become an important consideration both for investors and Google's startup selection process, with founders expected to demonstrate how the technology improves efficiency, reduces costs or creates new revenue opportunities.

On Google's selection criteria, he said startups are assessed based on product-market fit, alignment with the company's accelerator programmes, the strength of the founding team and their readiness to adopt AI.

He added that Nigeria's large population, deep talent pool, sizeable market and economic potential have made its startups some of the biggest beneficiaries of Google's programmes.