As Startups in Africa face a lot of challenges in a highly competitive world of business, LoftyInc Capital Management have advised more local and foreign investors to invest more in African startups in order to get quality return on investment and develop the region the more.
Unlike in Silicon Valley or other developed markets where angel and VC funding options are more widely available, start-ups in Nigeria tend to fail before they make it to their seed funding stage, most have to get by self-funding or bootstrapping as it’s called.
When the investors in Africa are willing, their terms or conditions can be onerous for a young company trying to find its feet.
Speaking at the event tagged “Smart African Investing” Michael Oluwagbemi Executive Partner at LoftyInc capital management said If we don’t invest in private-sectors or Start-ups, we stand a chance of losing our best hands to other countries or continent because people and talents will move if they don’t get the opportunities to express themselves.
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He further said “We have to turn our raw materials in Africa into actual economic growth which is the reason why we are passionate about innovation and what innovation can do for the growth of Africa”.
“If we want to see the future of Africa that is free of poverty and pain then we need to invest in our youths just like LoftyInc capital management invested in Andela which was worth $2.5 million but has now grown to $5million and has also shown that Africa can be headquarters of data revolutions in the world.”
The Executive Partner at LoftyInc capital management noted that Africa can lead the new age of data because one of the good things about revolution is nobody has an advantage which implies Africa can upgrade or develop and go into the age of data confidently and able to take its stands in the committee of nations.
“We need to invest in the future through the kids, invest in education and also in innovations as Africa need to invest more in human resources and not natural resources” Oluwagbemi told the audience.
The Executive Partner at LoftyInc also explained to the audience how Singapore, Switzerland Japan and other develop countries lack resources others country boast off but are constantly purposeful on one thing which is Knowledge.
”Africa as a whole, both government, private sectors and individuals have to invest more on education and innovative Ecosystem in other to win the future,” According to Oluwagbemi.
“Beyond that we have to invest more in Start-ups or private-sector entities that creates opportunities and jobs which will complement the innovative skills or educational skills received in schools that will lead to more economic growth.”
Osita Oparaugo CEO of FootPrint2Africa advised business Startups to be more purposeful when implementing their ideas and also noted that in whatever they are doing He said that if they are not creating value they are in the wrong business.
“In the last seven years Africans living outside Africa have sent more money to Africa than the entire donations of aids Africa have ever received so it’s more about what we can generate or develop as citizens”
The CEO of FootPrint2Africa said the new Africa is emerging and technology will play a huge role in its development as Nigeria is gradually becoming the sleeping China of Africa however we can make a difference by looking into the direction of technical education which will further develop manpower and allow investors see the potential in Africa
“Africa has an emerging housing deficit of about 17 million houses which will be needed for the next seven year, who will build the houses needed” CEO of FootPrint2Africa said at Event.
Yomi Ojo, CEO of Africa’s pioneer online printing company Printivo said the startup ecosystem is wide and still young so it’s difficult to raise money in Africa however it is still achievable.
“What we have learnt over time in the Nigerian market is that investors want to see growth, a good team, a good product and market potential before making investment (which is important) . Well designed PowerPoint slides and pitch decks can’t get you investments” CEO of Printivo said.
The CEO of Printivo said investing in a person is more important than investing in any brilliant ideas as over time productive results have shown that the individuals or founders that drive ideas are more important than any other factors.
“Startups need to see the peculiar challenges in Nigeria as an opportunities not as a threat which we also crossed in our payment problems in Printivo,” CEO of Printivo.
According to a report from Forbes, technology start-ups in Africa raised $129 million in funding in 2016, which found a 16.8 percent increase in the number of successfully funded start-ups over 2015.
The report which referred to another report by Disrupt Africa Tech startup noted that South Africa, Nigeria and Kenya remain the three most popular investment destinations on the continent, accounting for 80.3 percent of funds realized. However, Egypt experienced over 100 percent growth in fundraising, making it the fourth ranked destination.
It also stated that the number of startups that have raised funds increased by 17 percent from 125 to 146. This demonstrated the increasing interest in African technology startups in a variety of sectors, while it is refreshing that a greater percentage of those startups came from outside the big five (South Africa, Kenya, Nigeria, Egypt and Ghana). The report revealed that the total amount of funding fell, “more startups are raising smaller rounds. It is the end of irrational money and an upturn in angel investment from home and overseas”.
DIPO OLADEHINDE
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