Africa indeed presents numerous opportunities for funding investors. The continent’s economic landscape is evolving, and it offers a wide range of investment possibilities across various sectors.
Kristin Wilson, Portfolio Consultant & Strategy Lead, Spurt said this at the Inspire Africa Conference on Monday 18 September. She was joined on a panel with Lavanya Anand, SR, Investment Manager, Africinvest Group and Idris Ayodeji Bello, Founding Partner at LoftyInc.
According to Wilson, Africa is known for opportunities, and despite the challenges, solving real problems will pave the way for more funding.
During the panel discussion titled ‘Demystify Funding & Founding,’ Idris Ayodeji Bello, Founding Partner at LoftyInc, shed light on the complexities of investing at the angel stage, where founders often present nothing more than ideas and vision without any revenue.
“Before we invest,” Bello said, “we ask these founders why you, why now, and how big can this be?”
Bello said founders should build solution-focused startups rather than dwell solely on identifying problems. He argued that the potential for success hinges on offering viable solutions.
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Responding to how an investor can know a venture backable idea, ” Wilson noted that while there are countless business ideas, not all are suitable for venture capital. The venture-backable idea, according to Wilson, directly correlates with its scalability.
Regarding the avenues for startups to connect with investors, Wilson stressed the importance of visibility. She said putting herself out there is a major criterion, showcasing what sets their initiatives apart and how they tackle existing challenges. She also advised resilience in the face of rejection, as it can signal areas for improvement.
“It’s important that when you are pitching, recognising that you might get a ‘No’ the first time, but that tells you two things, which is its either it’s not a good idea, or you might need to refine your idea,” Wilson said.
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Investors tend to look out for startups that are solving really big problems, and that is not limited to just their region alone but startups solving global problems, Lavanya Anand, SR, Investment Manager, Africinvest Group said.
“The sectors that we look out for are quite broad, but mainly we focus on sectors that have raised the most amount of capital, and have seen successful exists over time in Africa, such as health tech, mobility, B2B e-commerce space, and other high valued sectors.”
“We are Africinvest Group tends to focus more in series A and B stage companies, this is particularly because the company has already reached some level of maturity and market fit,” Amand said.
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