Global Innovation Capital Funding and Financial Literacy as Determinants of Digital Payment Technology Startup Performance
Keywords:
Global innovation capital funding, Digital payment technology startups, Fintech, Venture capital management practices, Startup performanceAbstract
As digital payment technology startups come to play a growing role in promoting financial inclusion and digital transformation, the need to understand the factors that can boost their performance as organisations has grown. Although the number of investments in entrepreneurial activities has increased, little empirical research has been conducted on the effect of VCM practices on the performance of digital payment technology startups in the context of the global innovation capital funding process, especially in emerging economies. This study has focused on the effect of venture capital management practices on the financial performance of digital payment technology start-up in Nigeria. A quantitative cross sectional survey design was used, and primary data were gathered using a structured questionnaire which was administered to the management personnel of digital payment technology startups. Partial Least Squares Structural Equation Modelling (PLS-SEM) software program, SmartPLS 4, was used for data analysis. The results show that the venture capital financial management practices have a significant effect on Return on Equity (β = 0.745, t = 14.838, p < 0.001) and effective management practices have a significant effect on Return on Assets (β = 0.810, t = 21.092, p < 0.001). The study finds that the performance gains of global innovation capital funding are not only related to the availability of external funding, but also to the effective management and financial management of startups. The study adds to the entrepreneurial finance literature by showing that managerial ability is essential to the ability of venture capital to create sustainable organisational performance. The results offer practical recommendations for entrepreneurs, investors and policy makers to enhance Nigeria's digital innovation ecosystem.
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Copyright (c) 2026 Abiola A. Babajide, Ayodeji Temitope Kujembola , Olawale Olasunkanmi OLUSOLA, Moriam Bolanle SALAKO
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This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0). You are free to share and adapt the material, provided proper credit is given.
