Is Lagos a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Lagos has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Lagos gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Lagos

Funding is one of the most critical ingredients in building a successful startup – and Lagos offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Lagos boasts a dynamic early-stage funding environment, supported by various players. Notable VC firms active in the ecosystem include Ventures Platform, EchoVC Partners, and Microtraction, which focuses on pre-seed funding. The Lagos Angel Network (LAN) is a key angel investor group providing seed funding and mentorship. Government support comes from initiatives like the Lagos State Employment Trust Fund (LSETF), offering funding and capacity building programs. However, challenges persist. While Lagos saw a significant increase in funding in 2024 compared to 2023, the broader African market experienced a decline in venture capital deals between 2022 and 2024. There's also a recognized "Series A crunch," where startups find it harder to secure follow-on funding after initial seed rounds. Competition is high, and startups can face hurdles like inadequate infrastructure and difficulty securing follow-on capital. Despite a global downturn, local investors are increasingly stepping up to address funding gaps.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Lagos has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Lagos boasts a dynamic and resilient startup ecosystem, often called "Africa's Silicon Valley," housing nearly 88% of Nigeria's startups. The city is a hub for innovative activity, with a strong presence of coworking spaces like Cranium One and Regus, fostering collaboration and providing infrastructure. Numerous tech events, such as Lagos Startup Week, Art of Technology Lagos, Lagos Tech Fest, and Moonshot by TechCabal, connect entrepreneurs, investors, and enthusiasts. Entrepreneurial activity is high, driven by a young, tech-savvy population and a culture of solving local challenges with technology. While the ecosystem supports growth for all stages, programs like Lagos Innovates' Idea Hub and iHatch specifically target early-stage ventures with incubation and mentorship, suggesting personalized support exists alongside competitive programs. Organizations like Founder Institute Lagos also focus on very early-stage founders, providing essential skills and mentorship.

For many entrepreneurs, the energy and resources available in Lagos can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Lagos, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Lagos is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Lagos has a significant and growing talent pool for startups, fueled by numerous educational institutions like the University of Lagos and Covenant University, which are producing graduates with relevant skills. These universities, along with bootcamps and tech hubs, contribute to a steady stream of tech-savvy individuals. Industry-specific skills in demand include software development, data analytics, cloud computing, AI, and cybersecurity. Proficiency in languages like Python, JavaScript, and SQL is highly valued. Local talent supports entrepreneurial growth by providing a large, young workforce and contributing to an environment of innovation. While challenges like talent retention and a gap between academic and required startup skills exist, initiatives are working to bridge these. The presence of skilled local talent is a key factor in Lagos's emergence as a leading tech hub in Africa.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Lagos can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Lagos boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Lagos boasts a thriving startup ecosystem supported by various resources. Infrastructure includes numerous co-working spaces, incubators like CcHub and Wennovation Hub, and accelerators such as ARM Labs Lagos Techstars Accelerator, providing physical space and structured programs. Support systems encompass mentorship, networking events, and crucial access to funding from angel investors, VCs, and incubator funds. These resources help startups refine ideas, gain expertise, connect with investors, and scale operations. Government initiatives like the Lagos State Employment Trust Fund (LSETF) offer affordable loans and the Lagos Innovates program provides workspace vouchers, directly supporting early-stage businesses and improving the business environment. The Nigerian Startup Act also provides a legal framework. This combined support fosters innovation and growth in Lagos's dynamic market.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Lagos. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Lagos Be Considered the Best Place to Launch a Startup?

There’s no doubt that Lagos provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Lagos face significant challenges. Competition is high across various sectors as many businesses vie for market share. While Lagos offers a large market, the cost of living and operating can be substantial, impacted by factors like inflation and infrastructure deficiencies. Navigating complex regulatory frameworks and bureaucratic processes is also a major hurdle, requiring time and resources for compliance. These factors combined create a challenging environment for new ventures.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Lagos or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Lagos offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash