Founders of Nollywood internet streaming movie service iROKOtv have launched a company that has received $1 million in financial backing to help kickstart Nigerian startups.

Co-founders of iROKO Partners, Jason Njoku and Bastian Gotter, have formed a company dubbed SPARK, which has received $1 million financial backing plans to help build companies in Nigeria’s capital city Lagos.

The SPARK mission is to facilitate the transformation of good ideas into profitable and sustainable African internet businesses, a statement from iROKO Partners reads.

SPARK futher plans to fill a vacuum that exists in Nigeria’s angel investment, or $30000-75000 funding level ecosystem, say its founders.

iROKO shot to internet fame worldwide last year thanks to its internet Nollywood TV streaming service, which hit 500,000 subscribers in just six months. iROKO Partners also have a music streaming service called iROKING.

Jason Njoku, who is also SPARK managing partner, said in statement, “In Africa, we’re witnessing an exciting metamorphosis, from a tech ‘scene’ to a tech ‘revolution’, where Lagos is very much the gateway for the entire continent.”

He added: “The creativity, talent, the spirit of entrepreneurship is here but Nigeria’s business eco system isn’t set up to adequately support start-ups in their earliest days. Our intention with SPARK is to act as the catalyst to a period of aggressive and exciting growth in Africa’s internet sector."

Bastian Gotter, who is also a managing partner of SPARK, added in a statement, “The incubation period for any start-up is critical and we found that this is where Nigeria’s business infrastructure struggles most.”

“We fund our companies, provide them with the back room assistance they need to get started and advise them on all aspects of their business,” he said.