FATE Foundation, Dutch Bank Partner to Bridge Financial Gaps for Young Entrepreneurs

Gilbert Ekugbe

FATE Foundation has announced its partnership with the Dutch Entrepreneurial Development Bank to address access to finance challenges impeding the growth of young entrepreneurs in Nigeria.

Both organisations at a Capital Unleashed Roundtable event held in Lagos, said the move represents a significant milestone in fostering innovation and entrepreneurship in Nigeria especially in today’s rapidly evolving world, where young entrepreneurs are the driving force behind innovation, economic growth, and sustainable development. 

The Executive Director, FATE Foundation, Adenike Adeyemi, said the objective of the event is to initiate and develop ideas for new financial products that can bridge the early-stage financing gap, ranging between 50,000 and 250,000 Euros, maintaining that the initiative comes as a follow-up to the Orange Corners Innovation Fund (providing finance up to 50,000 euros) and finance provided via FMO subsidiaries (starting from 250,000 euros), both Dutch initiatives in Nigeria.

He stated that together with stakeholders from the startup ecosystem they touch on policy and regulatory reforms and design of innovative financing products, to explore collaborative solutions to address access to finance challenges.

Adeyemi pointed out that despite the vibrant entrepreneurial landscape, many startups struggle to secure the necessary funding to scale their ventures beyond the initial stages. 

“Although Nigeria is the most popular investment destination on the continent, access to finance remains a significant barrier for many budding entrepreneurs – particularly in the pre-commercial phase. This lack of growth capital impedes economic growth, entrepreneurship, and innovation across various sectors,” Adeyemi noted.

 The event builds upon the success of the Orange Corners incubation and acceleration programme and the Orange Corners Innovation Fund, implemented in Nigeria since 2019 and 2021, respectively. 

Till date, Orange Corners has supported the development of nearly 200 youth-led enterprises, supporting the creation of around 500 jobs in Nigeria. 

However, there is a recognised need for continued support beyond the initial stages of business development. 

She added that according to a recent survey among Orange Corners alumni indicated that although they have collectively raised over one million euros, less than 20 per cent of participants felt they had sufficient access to finance to scale.  

“I am excited about the collaboration between the Netherlands and Nigeria to accelerate access to growth capital for young entrepreneurs. This initiative aligns seamlessly with FATE Foundation’s commitment to fostering job creation, innovation, addressing finance gaps, and propelling Nigeria’s startup ecosystem to new heights,” she noted.

She said as a longstanding investor in Nigeria, FMO aims to maximise its impact in the country by supporting inclusive and sustainable economic growth and reducing inequalities. 

Through its investments in Nigerian Financial Institutions and Venture Capital funds FMO is unlocking financial opportunities for Nigerian youth entrepreneurs. 

Realizing that Nigerian youth-led businesses still face a large financing gap, FMO aims to work together with its clients, partners, and other ecosystem stakeholders to address market deficiencies that impede financial inclusion for the youth.

The Capital Unleashed round table underscores the commitment of the Netherlands to address the financing needs of young entrepreneurs together with players in the Nigerian ecosystem, create pathways for growth and sustainability, and propel Nigeria’s innovation ecosystem to new heights

Also speaking, the Minister for Trade and Development Cooperation of the Kingdom of The Netherlands, Geoffrey van Leeuwen, said young entrepreneurs’ ideas and ventures hold the key to addressing societal challenges and creating opportunities for a brighter future, adding that to turn their innovative ideas into sustainable, profitable enterprises, access to finance is key. 

“That is why the Netherlands and Nigeria co-convened this event, to accelerate access to growth capital for young Nigerian entrepreneurs. With Nigeria emerging as one of Africa’s leading startup ecosystems, the need for accessible finance is more pressing than ever. Bringing together government institutions, banks, venture capital funds, development organizations, and young entrepreneurs, these engagements will forge partnerships that will drive tangible outcomes in the realm of entrepreneurship and innovation,” the minister said.