Undisclosed funding round could be the new normal

I spoke to a startup founder recently to confirm a funding deal for the startup. First, the deal that was announced about two months ago actually happened last year which is not new. Secondly, the startup also closed a funding round a couple of months ago but the deal was never announced. The reason for not announcing the deal, according to the founder in question, was attributed to the Lagos State ban of commercial motorcycles in the state earlier in the year. In the last couple of years, there have been regulatory moves by government and its agencies, and some of these moves have been somewhat hostile to tech startups in the country. While these moves are likely going to affect the amount of funding coming to the industry (I may be wrong), I think undisclosed rounds (or even not announcing) is likely going to be the new order, moving forward.
I’d like to have your take on this


Wow very valid argument. It’s very plausible and if that becomes the new norm, it’ll be hard to track funding in the country which in itself is very necessary.

This happened to the likes of OPAY/GOKADA/MAX.

OPAY made it public by advertising in various media channels the funding they got.

They put their bizness in jeopardy when they said a rider can earn 10,000 naira a day.

Lagos state govt. where watching and calculating.

I dont blame any startup if they keep MUTE but for transparancy they shouldnt do that.

Our environment, government have made it difficult for them to disclose their FUNDING.

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To be honest, the two major reasons startups started announcing funding rounds in the first place are:

  1. Techcrunch
  2. Signalling to potential investors in their next round.

Interesting. No comment on the first point. For point #2, can’t the startups show the potential investors their figures in private? This is me asking like someone that knows nothing about the startup landscape.

This platform was created for a reason.

To share ideas.

Appreciate it.

Oh, true. I meant they’re trying to signal to investors not within their network or circle. Of course, investors they’re familiar with can get the figures privately. But when you’re progressing towards the post-seed level (Series A and above), you usually need a lot more investors, many of which aren’t within your network, to complete your round.

Case in point, Flutterwave had over 90 investors on its cap table by the time it completed its Series A round in 2018.



Interesting topic. As with everything, there are pros and cons to announcing your raise as a start up, most of which have to do with signalling:


  1. Signalling to investors
  2. Signalling to potential employees - showing them that you have the cash to afford their service
  3. Signalling to the public (potential customers, vendors, etc) in general to show that you are a somewhat serious business, with decent enough structure to bypass due diligence from investors


  1. Signalling to regulators and government - the tax authorities would likely have you on their radar
  2. Signalling to village people - they will know you have finally arrived and would want their share :smiley: .

All in all, in depends on your motives and your line of business. There is less need for a enterprise B2B startup to announce a raise, compared to a mass market B2B. If popularity is important for the founders and investors, then an announcement might be good. Otherwise, it may not be necessary. I for one think that most companies would continue to announce


This should have been the normal order of business, but awon startup founders had to learn this the hard way.
We can’t just copy everything as-is without considering our local context.

This country is a peculiar environment and I believe undisclosed funding is the best way forward; the more money you announce, the more the greedy government will come after you.

You can annouce you raised funds without mentioning the exact figures, keep the figures but do the PR.

LOL :rofl: :joy:
But you need to pepper them nau, so that they will know you have blow!


You cannot do that in this modern world. Look at HUSH PUPPY. People like him end up in prison.

He’s doing fraud nau…
Raising money is not fraud nau, so you should be save!