Chocolate City Founders Fund has introduced a $1 million initiative aimed at empowering early-stage startups within Nigeria’s rapidly expanding creative industry.
Launched in conjunction with Chocolate City Group’s 20th anniversary, this fund offers both equity investments and expert mentorship to emerging businesses in music, film, and creative technology sectors.
This initiative seeks to overcome the persistent funding obstacles that have long impeded the growth of Nigeria’s creative economy, which is anticipated to reach a valuation of $15 billion by 2025.
Co-founders Audu Maikori and Paul Okeugo, who also celebrated their 50th birthdays during the event, revealed that the fund was inspired by the financial and structural challenges they faced while developing Chocolate City into one of Africa’s leading independent entertainment labels.
“Traditional financial institutions often lack the understanding needed to support creative enterprises. Investors typically demand rapid returns, leaving promising young entrepreneurs stranded,” Maikori explained.
“Our approach is to provide patient capital from individuals who have successfully built enduring creative businesses within this market.
The fund focuses on startups that blend artistic innovation with sound business management,” added Maikori, chairman of Chocolate City Group.
Okeugo, the group’s vice-chairman, emphasized that funding alone is insufficient for building thriving companies. “We complement financial support with mentorship in areas such as intellectual property rights, contract negotiations, and sustainable business models – the very frameworks that enabled us to maintain independence while competing on a global scale,” he stated.
The fund’s operations will be managed in collaboration with Co-Creation Hub (CcHUB), Africa’s premier creative ecosystem accelerator. CcHUB will handle the application process, conduct due diligence, and oversee portfolio management.
Ojoma Ochai, Managing Director of CcHUB, highlighted the synergy between Chocolate City’s industry insights and CcHUB’s expertise in startup growth. “We recognize the unique needs of creative entrepreneurs aiming for sustainable expansion. This partnership guarantees holistic support for founders in the creative space,” she remarked.
Argentil Capital Management Limited is providing financial advisory services for the fund. Gbenga Hassan, the firm’s Managing Partner, pointed out the fund’s role in addressing a significant market void.
“Nigeria’s creative sector boasts robust fundamentals – with music streaming revenues surging by 63% annually and Nollywood producing over 2,500 films each year,” Hassan observed. “Despite this growth, access to structured capital remains scarce. The Founders Fund is designed to bridge this critical financing gap.”