Investment firm Hux Ventures concludes funding operations and introduces Venture Studio.

In a significant shift, Hux Ventures, a Lagos-based firm founded in 2019 by Sam Ojei, is closing its venture capital fund after six years of activity in Nigeria's startup scene. This decision marks the beginning of a new chapter for the company, as it transitions into a venture studio.

The venture studio model, which combines company creation, funding, and shared resources under one roof, offers more control for firms like Hux. This approach allows them to concentrate resources on fewer ideas, providing them with stronger operational support.

Hux, under Ojei's leadership, has been a prominent figure in Nigeria's startup scene. Alongside Hux, Ojei also runs Foundersmax and Startup Cohort. The team at Hux has always believed that the best is yet to come, and this transition reflects their commitment to this belief.

One of Hux's most notable initiatives was Hux Fast, a program designed to plug funding and mentorship gaps for African startups. This program, along with their hands-on approach to shaping startups, has helped produce ventures with sturdier foundations, even in Africa's fragmented capital markets.

However, in today's market, deals have slowed in early-stage VC across Africa, and follow-on funding is harder to secure. Recognising these challenges, Hux positions itself to build startups that may survive funding droughts.

The end of the fund indicates that Hux believes deeper in-house building has more impact than light-touch support. By stepping back from the traditional VC pool, Hux is focusing more on building in the trenches and less on investing from the sidelines.

This transition comes as no surprise, given Ojei's strategy to focus on building ventures directly. In 2022, Ojei was named Nigeria's Entrepreneurial Supporter of the Year, a testament to his dedication to the startup ecosystem.

In a public statement, the team at Hux said, "Closing Hux Ventures is not the end. It is the beginning of something new." As Hux moves forward as a venture studio, it will build fewer companies but stay deeply involved in their growth, continuing its mission to shape startups with hands-on involvement.

Globally, venture studios are emerging as an alternative to classic VC, and Hux's transition underscores this trend. As Africa's startup scene continues to evolve, it will be interesting to see how Hux's new venture studio model contributes to the ecosystem's growth and resilience.

Investment firm Hux Ventures concludes funding operations and introduces Venture Studio.