Spinlet, a cloud-based music streaming and storage app maker based in Finland has received a significant undisclosed investment from Verod Capital an emerging markets investment firm based in Nigeria, with interests across several sectors.

The social mobile music service enables consumers to remotely store, manage and listen to music from anywhere using any mobile device. With Spinlet, users can also create playlists, stream and seamlessly synch music tracks across devices as well as share their favorite titles using social networking sites, like Facebook.

Founded in 2006 by Sami Leino and Ville Leino in Finland, Spinlet will combine the best of elements of the Music Cloud’s existing service with mobile downloading capabilities in its new version due for launch in July 2011. The service would also be available for major mobile operating systems including Android, Blackberry, Symbian 60, Windows Phone 7 and popular Java-enabled mobile phones.

“Spinlet might be the first acquisition of a leading European mobile technology start-up by a Nigeria-based investment firm,” said Verod Capital CEO, Danladi Verheijen. “We are extremely excited about the potential to leverage Spinlet’s technology across large African markets, as well as support the company’s growth in other parts of the world.”

Before now, Verod Capital has invested into real estate development, manufacturing and production-based companies in Nigeria. Verod Capital’s investment in the emerging digital music and technology space shows that if local tech entrepreneurs build innovative services, they could receive investement.

Spinlet started out focusing on building a strong IP portfolio and launched their first cloud-based music service in 2010. The company is now seeking distribution and affiliate partnerships with local mobile service operators and original equipment manufacturers to expand availability.

Spinlet  is also working with leading music labels in Africa, Europe and Asia to further develop its portfolio of localized music catalogues.

After some demo presentations of the ideas to the judges, here are the best ideas that made it from the 2-day innovation camp which started on Thursday and ended about 45 minutes ago.

3rd Prize – $1500 @mWantedng

mWanted is a real-time crime information and security-awareness network.

2nd Prize – $2000 @my123health

My123Health provides health information on the go via SMS.

1st Prize – $3000 @i_watchnigeria

iWatch is an independent performance monitoring platform for government officials.

The idea is to monitor and track the performance of government using multiple channels, including SMS, email, etc.

Initially submitted as e-Mandators, the idea name was changed to iWatch Nigeria at the camp.

Interestingly, 2 of my predictions were correct out of the 3 ideas that won today.

And iWatch Nigeria is my best idea from this year’s Social Innovation Camp.

Congratulations to all the other winners today and the other participating ideas.

What Next?

My hope is that these ideas would get off the ground sooner than later and start impacting on our lives in various ways.

It’ll be interesting to see how far these ideas when implemented could go mainstream, and possibly global just like Ushahidi, Kenya’s crisis crowdsourcing mapping tool.

Last week, Adlevo Capital announced its first closing of a $52 million capital commitment focused on technology-enabled businesses across sub-Saharan Africa, particularly in Nigeria and South Africa.

Adlevo Capital is a private equity firm focused on technology enabled infrastructure and services investments in sub-Saharan Africa. The Fund has received capital commitments from a premier group of development finance institutions and private institutional investors based in Europe, South Africa and the US.

The press release states:

Adlevo Capital Managers (“Adlevo Capital”) announced today that it has completed the first closing of Adlevo Capital Africa (the “Fund”) with capital commitments of US$52 million. The Fund will make expansion capital investments into companies with technology-enabled business models across sub- Saharan Africa.

According to Yemi Lalude, founder and Managing Partner of Adlevo Capital,

We are very pleased to have attracted investments from several of the most successful Africa fund investors who, like us, see the growing scope for compelling technology-enabled company investments and believe that investments in this area will also provide positive social development outcomes…The Adlevo Capital team has developed a pipeline of attractive investment opportunities and is looking forward to commencing investments and working with the management teams of its portfolio companies.

The Fund has received capital commitments from a premier group of development finance institutions and private institutional investors based in Europe, South Africa and the US.

The Fund’s objective is to make equity and equity-linked investments in rapidly growing private companies in various stages of development that derive their competitive advantage from the development and exploitation of technology or technology-driven processes.

Adlevo will also target clean tech opportunities and may take majority or minority positions.

Adlevo Capital plans to hold additional closings for the Fund over the next nine months with a final closing in the first quarter of 2011. The Fund will seek to invest in companies that possess the following characteristics:

1. Strong management team
2. Large market opportunity
3. Consumer driven growth
4. Positive impact on WIRED attributes

My Thoughts

Before now, there has been no trace of VC funding for technology companies in Nigeria. With this, the Nigerian tech ecosystem will improve tremendously as it will encourage technology innovations, as well as investments and partnerships from local and foreign companies (especially those that have been skeptical about investing in the Nigerian market).

Nigerian tech entrepreneurs will be more focused on developing web and mobile applications, services and technologies that are not only socially and economically relevant, but also financially viable.

In the nearest future, we can expect to see more investments in the Nigerian IT software industry, a catalyst in driving the local IT market and encouraging local software developers to becoming more resourceful in their field.

At a time when some states in Nigeria like Lagos and Ogun have set the ambitious goal to achieve a mega city status, one wonders if a silicon city is in their master plans.

By Silicon City, I mean a place for growing and nuturing start-ups. Simply put, a start-up hub. While I’ve suggested quite a few places in Nigeria that can be developed to encourage start-ups, entrepreneurs and investors to move to, I didn’t consider Ilorin, Kwara State until now.

In a video posted on YouTube, a new proposed commercial project called Asa Dam Muliti-purpose Center is being embarked upon by the Kwara State Government, which if managed well, could make Ilorin a potential start-up hub to watch.

Vop Osili, an Architect and Founding Partner and Principal, A2SO4, who visited the site in 2007, described it thus:

The Asa Dam project is a massive undertaking that will result in a tourist center unlike anything that has ever existed in that part of the world. It includes a large amusement park, three hotels, a conference center, a mall, gardens, and a sprawling golf course.

Also included in the plans is an international school, which will give Nigerian children the chance to experience high-quality education for the first time. The project will cover almost 1,000 acres and seeks to elevate the Asa Dam area’s prominence, both nationally and internationally.

It is also an environmentally-conscious project that will preserve the ecosystem and biodiversity of the area. The goal is to bring new investment to Nigeria and new pride to a nation of people.

What about Electricity?

According to an article in Trade Invest Nigeria,

Due to the recent completion of the Ganmo sub-station, Ilorin currently enjoys very close to 24 hours a day of uninterrupted power supply. In fact, many business owners are delighted by the fact that they have to make very little use of generators.

If this is true, I guess we can start picturing a city such as Ilorin becoming a great start-up hub. Whether this would become a reality or not, I don’t know. But I think it could very well compete with Silicon Cape which is gradually bringing people together to create Africa’s largest start-up hub in Capetown, South Africa.

Perhaps, the Silicon City Nigeria social network created by Kayode Adebayo via the Ning platform could spark up discussions on creating an ideal start-up hub in Nigeria.

Until then, a silicon city in Nigeria might just be a dream.

Photo via: Tourism ROI

Since I started watching the African Technology scene, I’ve seen quite a good number of start-ups from Africa with great potentials. I’ve also reviewed some like Afrigator.

While we’ve also seen several techn0logy events such as BarCamps in several parts of Africa, we’re yet to see a programme designed to jumpstart the entrepreneurial community in Africa by connecting next generation developers and entrepreneurs such as SeedCamp.

Seedcamp acts as a micro seed fund to invest in startup companies, mainly through a flagship event called Seedcamp Week which takes place in September every year. Here are the 21 finalists for the Seedcamp Week 2009.

Following Seedcamp Week, the companies who receive investment stay in London for 3 months to grow and develop their company, building key and lasting business relationships along the way to help them sustain a viable business.

In Africa, I believe we have the talents, the role models, the thought leaders and the capital founders needed to succeed. My thoughts are if only Africa could have a similar event gathering such as Seedcamp’s, it would serve as a catalyst for the next generation of great entrepreneurs in Africa.

What are your thoughts?

As Paul Graham, the most respected authority on startups put it:

For the price of a football stadium, any town that was decent to live in could make itself one of the biggest startup hubs in the world. What’s more, it wouldn’t take very long. You could probably do it in five years during the term of one mayor (or governor).

Granted, most of the state governors claim to have ICT development plans, but have hardly harnessed the economic benefits and potentials of a technology & business startup culture in certain cities.

With so much attention on diversifying the Nigerian economy from over-dependence on oil, to tourism, agriculture, and other sectors, what better time to focus on developing the “knowledge economy” driven by massive ICT infrastructure development in any given state or city.

A “Knowledge Economy” will naturally give birth to a new generation of technology-savvy entrepreneurs with a rare business culture – one that can support the vision of creating a startup hub in any city in the world.

Today, Internet and technology companies such as Google, Yahoo and Microsoft have become some of the largest employers of labour in the United States and have generated huge streams of revenue that has successfully driven the U.S economy.

Can this success be replicated in Nigeria?

Yes. But it would require a lot of effort and investment from the government and the private sector. Interestingly, there are a few states or cities in Nigeria I’ve identified where a “technology” startup hub could easily be created.

I’ll be profiling and analyzing five of these states and cities in this post, so in no particular order, here are 5 best places to grow a startup industry in Nigeria.

1. Ogun State

Located in south-western Nigeria, Ogun State has a 2005 population estimate of over 4 million inhabitants, with Abeokuta as the capital and largest city.

The state has the largest number of universities in Nigeria such as Crescent University, Abeokuta, Covenant University, Ota, Babcock University, Ilisan Remo, Bell University of Technology, Ota, and polytechnics such as Abraham Adesanya ICT Polytechnic, Ijebu Igbo, Gateway ICT Polytechnic in Saapade and Igbesa.

With heavy investment in education, ICT development and infrastructure and an on-going solar power e-learning project, Ogun state looks like a great place for startups to thrive. It had a GDP of $10.47 billion in 2007 and per capita income of $2,740.

Besides, the cost of living and doing business in Ogun state is relatively low compared to Lagos state. For instance, you could get an affordable flat (for office space) in towns such as Mowe-Ofada, Ota or even Abeokuta.

Personally, I think that Ogun state is one of the best places to create a startup hub in Nigeria as it is gradually developing and investing in – infrastructure, ICT and education – some of the key factors needed to create a startup chain reaction.

2. Enugu State

With a population estimate of about 5.6 million people (2005), Enugu state is home to Nigeria’s first indigenous university, University of Nigeria Nsukka (UNN).

An inland state in south-eastern Nigeria, Enugu also hosts the Enugu State University of Science & Technology (ESUT), Institute of Management and Technology (IMT), Enugu State College of Education Technical, Caritas University, Amorji-Nike, Renaissance University, Ugbawka, Our Saviour’s Institute of Science and Technology amongst other learning institutions.

Enugu had a coal industry that use to be one of the biggest employers of labour. In fact, coal was first discovered in the Udi Ridge in the 1900s, led by a British mining engineer named Albert Ernest Kitson, after which Frederick Lugard took keen interest in the discovery and by 1914, the first shipment of coal was made to Britain. Little wonder, Enugu is described as the “Coal City”.

The energy needs of the state could be made a permanent solution with the development of the coal industry and the reactivation of the Oji River Power Station located in Enugu (which used to supply electricity to all of Eastern Nigeria). Even so much so that the proximity of the Enugu coal mines to the power station is only a driving distance of about 20 minutes.

With recent investments in ICT development, infrastructure and a WiFi Internet access project embarked on by the state government with support from Zinox Technologies, Enugu state could become a great startup hub in the future.

3. Lagos State

As the commercial capital city of Nigeria with a population estimated at 18 million inhabitants and the vision to transform into a mega city by 2015, Lagos state is certainly one of the best places to create a startup hub.

No doubt, Lagos has the people – entrepreneurs, investors, researchers, consultants, technology enthusiasts, etc – who could spark up a chain reaction for technology startups in the next few years. Again, the state’s GDP as of 2007 was $33.68 billion and a per capita income of $3,649 which makes it the largest economy in Nigeria.

The University of Lagos at Akoka, Yaba is well-renowned for research and development in technology and innovation and has produced some of the best talents in Nigeria such as Fola Adeola, Dele Olojede, Richard Mofe Damijo and Matilda Kerry.

Lagos also has a well-renowned Business School (LBS), ranked among the top 55 Business Schools in the world by the Financial Times of London (2009), as well as several other institutions around the metropolis, which naturally makes it a place with a business culture.

Even though Lagos is densely populated, cities and towns such as Lekki and Badagry, surrounded by the Lagos Lagoon, bay and beaches, are gradually experiencing property and infrastructural development with expansion plans for Transport, Airport, Free Trade Zone and Golf course, which could eventually make these cities a great startup hub in the future.

Personally, I’d love to see Internet companies headquartered in the Lekki Pennisula (Lekki Bay Area, as I call it) as well as Badagry, Victoria Island and Ikoyi within the next 10-15 years.

4. Cross River State

The state of Cross River with its capital city, Calabar has been acknowledged as the leading eco-friendly tourism spot in Nigeria. With a 2005 population estimate of over 3 million inhabitants and a 2007 GDP of $9.29 billion and per capita of $3, 150, this coastal state located in south eastern Nigeria is a wonderful place to live and build a startup.

The state is home to the University of Calabar and several other institutions and is gradually transforming itself into a world tourist attraction, especially with landmarks such as the Obudu Ranch Resort, Tinapa Business Resort, Calabar Free Trade Zone and the Calabar Sea and Airports which all present great opportunities for business and trade within the region.

Besides, the Cross River State Information Technology Village in collaboration with Microsoft offers the Microsoft Unlimited Potential Programme for the South-South geo-political zone which is delivering IT training to students and inhabitants to keep pace with the technology in today’s competitive business environment.

Tinapa, the first world class integrated business and leisure resort in Nigeria, located in Calabar with world class facilities and Free Trade Zone could become one of the biggest technology startup hubs in Africa.

5. Rivers State

Rivers State is the second largest economy in Nigeria after Lagos state with GDP of over $21 billion and per capita of $3,965, according to the 2007 CGIDD figures, particularly due to the fact that it is the chief oil-producing and refining state.

The capital city, Port Harcourt which is the main hub of the oil and gas industry in Nigeria as well as the West African sub region, has a population estimated at 2.7 million for the Urban Area, while the Greater Port Harcourt Area is estimated at about 3.7 million, according to a 2007 population estimate.

The city is home to the Rivers State University of Science and Technology, University of Port Harcourt, an international airport, two seaports (F.O.T Onne and Port Harcourt Wharf), two stadiums (Sharks Stadium and Liberation Stadium) and two refineries.

However, the activities of several armed militants in recent times have made life and commerce in the once peaceful town a dangerous place to live and operate a business. Again, the city has a very high standard of living that could make it difficult for startups to thrive and survive, especially in their first year.

But startups that decide to move there can take advantage of the oil-rich economy and wealthy individuals who reside there, as this could help create a Venture Capital industry.

Besides, with the development of the Greater Port Harcourt which would provide economic growth poles with strong lateral linkages and exerting a positive impact on the economy and leading to a sustained increase of incomes of the New Town regions, the city could grow to become a great startup hub.

My final thoughts

Creating a startup hub in any of these cities will definitely take some time. It would start with each state government recognising the future economic benefits of creating a startup hub and harnessing its early potentials and development.

However, any individual or group of individuals that could start or build an online venture, secure funding from investors or sell a percentage stake to a global or local technology company, and move to any of these cities could very well cause a sustainable chain reaction for the development of a startup hub.

By the time more and more startups move into an ideal and decent city or town, it could attract a critical mass of people and investors, thereby creating a Venture Capital industry that could drive any startup hub in Nigeria.

Personally, I would love to wake up one morning in the year 2020, tune to CNBC Africa and listen to the news that a local Internet company has been listed on the New York Stock Exchange (NYSE) and the price of the company’s stock has eventually risen 30% to $467.23 per share.

I’ll be discussing five more potential startup hubs in a future post.