Meritum
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Meritum raises capital like a typical non-profit organization—through donations. However, our model is distinct, as we structure our funding similar to a venture capital fund. Our first initiative, Meritum Fund 1, will be financed by donations from our founders and a select group of like-minded donors who share our vision for Nigeria’s development. Unlike traditional venture capital funds, these donations are made without any expectation of financial returns. Future funds will be raised based on the evolving capital needs identified from our initial investments, allowing us to scale our impact sustainably.
Our approach to deploying capital mirrors the relationships seen in venture capital. We do not provide grants; instead, we invest in businesses with the expectation of returns. This ensures accountability and aligns the goals of both Meritum and the companies we support. We primarily invest in equity, but we are open to using convertible instruments, such as SAFEs or notes, when appropriate. These agreements are designed to convert into equity when the business reaches key financial thresholds, such as raising additional funding. Through this approach, we position ourselves as profit-seeking investors while remaining firmly rooted in our non-profit mission.
Unlike traditional venture funds that return profits to investors, Meritum redeploys returns into new opportunities. As our portfolio companies succeed, the returns from these investments are used to fund additional ventures, enabling us to take on larger, more transformative projects. Over time, we aim to increase our check sizes and tackle more daring challenges, all funded by our previous successes. Our ultimate goal is to build a self-sustaining cycle, where the returns from past investments fuel a continuous wave of growth and innovation, eliminating the need for future fundraising.
By adhering to this process, Meritum strives to create a lasting impact on Nigeria’s entrepreneurial and infrastructural landscape, fostering a thriving ecosystem where businesses can grow and the nation can prosper.
Ready to grow your business? Meritum invests in resilient Nigerian enterprises overcoming infrastructural challenges and driving development. Let’s work together to unlock new growth and build a thriving future.