SPARK, the Lagos-based internet group that invests in Nigerian start-ups, has raised $2 million investment from a syndicate of 17 international individual investors, valuing the three-months-old company at $10 million.
The investment comes after entrepreneurs Jason Njoku, Bastian Gotter and Mary Remmy-Njoku of Nollywood VOD start-up iROKOtv, launched the company, when they announced a $1 million fund to transform Nigeria’s angel investment ecosystem that focuses on Nigeria’s internet startup scene.
Spark companies currently employ 130 people across the nine launched companies, three of which have already secured second-round seed investments totalling an additional $700,000 from Njoku and Gotter, primarily to build upon their current market leading positions, compete more effectively and enable them to meet consumer demand.
Spark companies such as hotels.ng and ToLet.com.ng collectively generate $50,000 turnover a month and this figure is expected to increase significantly.
“We set out to grow the Spark companies to be market leaders. This requires capital. We have been able to raise the $2 million in nine days from high network individuals, three months after the official Spark launch. We expect to raise more money in the coming months to cement Spark as one of the pre-eminent internet groups in Nigeria and Africa,” said Jason Njoku, Spark Managing partner.
Currently, the Internet sector in Nigeria is valued at $250 million, but industry experts have calculated that this will increase to $1 billion by 2016.