Chocolate City Founders Fund has unveiled $1 million Chocolate City Founders Fund, an initiative aimed at supporting early-stage startups in the country’s fast-growing creative sector.
The fund, launched during Chocolate City Group’s 20th anniversary celebration, will provide equity investment and mentorship to startups operating in music, film, and creative technology.
It is designed to tackle financing challenges that continue to hinder growth in Nigeria’s creative economy, which is projected to reach $15 billion in value by 2025.
According to the co-founders of Chocolate City, Audu Maikori and Paul Okeugo, who also marked their 50th birthdays at the event, the fund was conceived to bridge the financing and structural gaps they encountered while building the entertainment company into one of Africa’s most successful independent labels.
“The reality is that financial institutions struggle to understand creative businesses. Investors want quick returns, so young entrepreneurs with genuine potential get stuck.
“We’re providing patient capital from people who have built sustainable creative businesses in this market.
The fund targets companies that combine creative vision with business discipline,” said Maikori, chairman of Chocolate City Group.
Vice-chairman of the group, Okeugo, stressed the importance of operational guidance alongside financial investment. “Capital alone doesn’t build successful companies.
“We’re offering mentorship in rights management, contract negotiation, and sustainable business practices – the same structures that helped us stay independent while competing globally,” he said.
The fund will be implemented in partnership with Co-Creation Hub (CcHUB), Africa’s leading creative ecosystem enabler. CcHUB will oversee applications, due diligence, and portfolio management.
Managing director of CcHUB, Ojoma Ochai, said the collaboration combines Chocolate City’s industry experience with the hub’s startup development expertise. “We understand what creative entrepreneurs need to scale sustainably. This partnership ensures comprehensive support for creative founders,” she stated.
Financial advisory support is being provided by Argentil Capital Management Limited. The firm’s Managing Partner, Gbenga Hassan, described the fund’s investment focus as filling a critical market gap.
“Nigeria’s creative economy has strong fundamentals – with music streaming revenues growing by 63 percent annually and Nollywood producing over 2,500 films a year,” Hassan noted. “Yet, access to structured financing remains limited. The Founders Fund directly addresses this inefficiency.”
