Startup fund - Afrikan Heroes

30 Entrepreneurs Receive $1.3m From The Government Of Côte d’Ivoire

August 23, 2020

The government of Côte d’Ivoire has granted funding of CFAF 776 million ($1.3m) to 30 entrepreneurs to support their projects. These are the result of the first two sessions of the certification committee of the funding platform of the Youth Employment Agency.

Here Is What You Need To Know

In Côte d’Ivoire, the Agence Emploi Jeunes handed over a little more than 776 million FCFA to 30 entrepreneurs, under the coordination of the Minister of Youth Promotion and Youth Employment, Mamadou Touré .

The beneficiaries each received a sum ranging from 5 to 50 million FCFA ($8.9k to $89.9k), as support for their projects in the fields of livestock, agriculture, trade, agro-industry, services, etc.

*Biggest business obstacles for SMEs in sub-Saharan Africa*. *Image Source: Brookings Institution*

The Youth Employment Agency, through its online platform, allows entrepreneurs to present their projects with a view to financial support. A selection committee is responsible for rating and selecting the projects that will receive funding corresponding to the rating obtained.
These projects, resulting from previous sessions of the certification committee of the Youth Employment Agency funding platform, will create more than 800 new jobs.
To date, 528 projects have already benefited from a total funding of 6 billion FCFA.
The funding, which is part of the implementation of the Ivorian government’s Social Program, has mobilized 15 billion FCFA for the year 2020, and aims to support the projects of more than 26,000 entrepreneurs.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

Nigerian University Allocates Startup Funds To Graduating Students

A Nigerian university, Godfrey Okoye University, located in the south eastern part of the country has offered to grant startup funds to projects of its students upon graduation from the university’s entrepreneurship training program.

Here Is What You Need To Know

Tagged, the Student Training for Entrepreneurial Promotion (STEP), the program aims to equip students with the entrepreneurial skills and startup funds needed to start their own business after graduation.
Several students form a corporate team, and each team receives a seed fund of about $100 to set up a very small business that they will need to grow over time.
Their products are sold in and around the university, but also on various online sales platforms.
Profits from these small businesses can be as high as $260 per day.
While institutions and universities are increasingly introducing entrepreneurship training and courses into academic programs in Africa, very few are offering start-up funds to students.

Figures of the week: Financing for small and medium-sized ... — Nigerian Godfrey Okoye University ‘s startup funds will go a long way in encouraging the birth of more startups in Nigeria. Main obstacles to SME lending in Sub-Saharan Africa Image Source: Brookings Institution

Godfrey Okoye University is breaking new ground with the STEP program, and the initiative has been very successful since its launch in 2018.
Young people represent 60% of the unemployed in Africa according to figures from the World Bank.
On the other hand, the International Labor Organization (ILO) reports that more than 90% of people between the ages of 15 and 24 in Africa have precarious jobs, usually in the informal economy.
Failing to contain this young and ever-growing population, support for job creation such as this could transform this demographic aspect into a development opportunity for Africa.
Godfrey Okoye University has thus succeeded in changing the narrative of entrepreneurship education, moving from theoretical teaching to the realization of small business projects.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

Lessons This Founder Learned Raising A Series A Round Of Funding For His Startup

November 16, 2019

My startup Meddy, a GCC-based consumer-facing online platform that helps patients find the best doctors and book appointments with them, recently raised a total of US$2.5 million in a Series A funding round led by NYC-based Modus Capital, along with participation from 212 Capital, Kasamar Holdings, Dharmendra Ghai (Health Tech Angel), Innoway, and others. While we get set to use the funds we raised to scale up our operations in the UAE, I also wanted to share some of my insights from the fundraising experience with all you entrepreneurs out there- hope these help you in your own startup trajectories!

1. Start early (as it will take a while)

Fundraising is a very long process, as you have to build a relationship with investors before they are ready to talk terms and commit. A lot needs to happen between your first call or meeting, and ultimately wiring the funds. According to a report published by MAGNiTT, 71% of startups claimed fundraising took up to nine months. So, don’t start fundraising when you have only less than three months of runway. You will probably not close in time, and even if you do, you’re unlikely to get favorable terms, because you won’t be in any position of leverage.

2. It’s a sales process

Closing a venture deal is very similar to a long enterprise sales cycle. It’s highly unlikely that your first meeting will lead to a term sheet. You will probably start with an email, which will lead to a call, which will lead to a meeting, which will lead to reviewing the numbers and research, and so on and so forth.

There are multiple decision makers along the way, and it’s key that you be spending most of your time with the key decision maker. You will know you’re making strides when they start introducing to other people in the firm to get their buy-in. Remember that it’s not uncommon for your lead to go cold on you after staying in touch for weeks or months- you may have to find another entry point to get back on their radar.

3. Manage your funnel properly

You should treat fundraising similar to how you treat a sales pipeline- you have to manage and nurture them properly. I maintained a Google Spreadsheet with detailed information about investors, their sector focus, prior investments, last meetings, etc.

Towards the end of it, this evolved into becoming a nice customer relationship management (CRM) record of all the investors I met, as well as those who I needed to meet. At the end of the day, it’s a sales funnel, and you have to keep feeding the top of the funnel with a lot of investor meetings to increase the probability of some of them eventually converting and writing a cheque.

4. Don’t underestimate a very well-written cold outreach

The prevailing wisdom is always to get warm intros to investors, and I fully agree with that. But most people underestimate a very well-written cold outreach. My lead investor came through a cold outreach on Twitter.

5. Target the right investors

Do your research to figure who would be the right investor for you, and for the stage of your company. Most investors make it explicitly clear on their website at what stage they invest in. So, don’t spend too much time chasing investors who do late-stage growth rounds, when you’re raising your seed or Series A round. You should certainly get in touch with them to get their feedback and nurture them with quarterly updates to eventually get them to participate in your next round.

However, it’s best you prioritize your time finding a strong lead investor for your round. As the name suggests, lead investors are extremely important as they set the terms for the round for them, and for everyone else to participate. They also become your partner, and they will help you close other investors.

6. Remember that venture capital (VC) funds are not the only source of venture capital

As counter-intuitive as it may sound, there are more sources of capital than just going after the venture funds. Angels, angel groups, and accelerators are, of course, a big part of the ecosystem, but not many startups are targeting family offices, high net worth individuals, C-level executives at big companies, large corporates as strategic investors, etc. Most of them are looking to diversify their investments from asset-heavy businesses to asset-light investments- not to mention their extensive network connections in the market that you can leverage.

7. Build a document for frequently asked questions (FAQ)

Since you will be meeting a lot of investors, you will start getting the same questions over and over again. Instead of winging an answer every time on the fly (and probably putting yourself at risk of saying a different answer), you should build an FAQ document for yourself where you can put concise answers that you say to anyone who asks you the same query another time. This will make you sound more confident and prepared, and investors like it when you have already thought about the questions and concerns that they have. It just makes you seem that know what you are talking about.

8. Legal takes a long time

When we first got a term sheet, I thought I can just delegate all this legal stuff to a lawyer, and have him/her take care of this. I couldn’t have been more wrong. Legal ended up taking an insane amount of my time. Legal due diligence gets very messy if not handled properly, but that’s for a different post altogether.

9. Be prepared to not get any answers

You will be meeting a lot of investors, and as such, you’ll constantly be getting feedback. It’s imperative you learn from the feedback, and improve your business and pitch deck. Some investors would be kind enough to give you an affirmative “no,” and even give a rationale behind it. This will help you move on, and spend your time and effort going after others.

However, most investors will not reply, and they’d just ghost you. VCs are notorious for not saying no to keep you on the hook, in case you become interesting down the line. From my experience raising multiple rounds of funding so far, a “yes” usually comes a lot quicker than a “no.” However, it’s not uncommon for them to change from a “yes” to a “no” later on as well.

10. Get better at storytelling

In order to raise funding, you need to have great numbers and compelling overall traction. But numbers are not everything. You’re there to tell a story, you’re painting a picture that roughly follows this format: the current status quo is not good enough, millions of people are struggling with a problem. You have a product that is 10 times better at solving the problem, and is, in the process, making the world slightly better.

You need their money to accelerate that progress. You’re there to convince them that you and your team are the right people to pull it off. Numbers and traction definitely help with making a decision, but they are not everything. It’s also a lot about your chemistry between you and the partner at the fund. After all, people make decisions emotionally; they just rationalize the decisions to others (and themselves) with numbers. So, being good at telling a story and convincing others to join on that vision is super important.

11. Always keep in mind that fundraising is a means to an end -and not an end in itself

Fundraising itself is not a goal of your company- that should be to build a sustainable business that solves a problem. So, treat fundraising as such, and get back to working on your business. Don’t spend any more time on fundraising then you have to.

Haris Aghadi is the founder of Meddy, a GCC-based healthtech startup that helps patients find the best doctors and book appointments with them, shares his insights from the fundraising experience.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Will Investors Fund Your Startup?

October 26, 2019

Will investors fund my startups? Does your startup really have a chance of getting funded?

Whether you are still debating whether fundraising is the right path right now, or you’ve had some rejection and want to know whether it’s worth continuing, these questions will help you evaluate your startup, and improve your game to increase your odds of getting funded.

Or you might find it’s time to make a quick pivot to give your vision the best chance of success.

Does Your Founding Team & Board Of Advisors Give Investors Confidence?

When it comes to early-stage startups and funding rounds, a lot is riding on your team.

You may not yet have revenues or even a finished product. Even if you do, investors at pre-seed through Series A are mostly looking at the strength of your team.

When thinking about will Investors fund my startup having a strong business idea is great, but there are few truly original ideas. What investors are looking for is the best team to execute.

Investors will be looking to see if you have any track record in successful startups, if you truly have domain experience, are being realistic, how many cofounders you have, and the advisors you’ve brought in. If you have any gaps or weak areas on your team, hire or bring in help that will round things out, and give investors trust in your ability to make your plans happen.

Do You Have Really Big Market Potential?

How big is your industry? How big are your potential gains? What does growth look like in this space over the next few years? This are questions you should ask yourself ahead of thinking the if of will Investors fund my startup.

Billion-dollar companies used to be something really rare and special. They still are great success stories but are far more common than they used to be.

You’re now competing in an ecosystem where other startups are worth tens of billions of dollars. You may end up selling or being acquired much sooner than you planned, but if you want to get funded, you should be aiming for a really big market.

This not only gets investors excited but is the range in which you have to operate if you are going to deliver those super attractive 100x returns.

Break down your market by not only total size, but total addressable market segment you are a good fit for, and a reasonable percentage of market share you can achieve.

Are You Solving A Hair On Fire Problem?

Most businesses that never make it have nice to have products that really aren’t solving an urgent problem. If you’re going to count on people being willing to part with their precious hard-earned dollars, and more importantly, give you the time and attention to spend them with you, then you’ve got to be tackling a serious need.

Are people really searching for a solution to this right now? Will this still be one of their biggest problems in five and 10 years from now? Could this lead investors to fund my startup?

Do You Have Product-Market Fit With Your Target Customers?

You may not have it yet depending on what stage of business you are at, but it is one of the most important and hard to nail factors for startups. Achieving product-market fit is a great selling point for investors. Even if it is still at a modest level.

Securing and proving product-market fit is really about proving people are willing to pay for your solution. Getting a lot of website visits and inquiries from leads is a good sign. Though unless you actually have users, happy feedback and preferably paying customers you may not have proven you’ve got it, yet.

Do You Have A Great Pitch Deck?

You can have everything else right, and have all the right ingredients for startup investors would want to fund, but if you aren’t conveying it well through an effective pitch deck you still won’t get funded.

You have to bring together all of the points here in a cohesive, smooth flowing and easy to understand the deck.

Be careful not to get lost in endlessly tweaking your deck before launching a fundraising campaign.

Are You Ready For Rejection?

It can take a lot of rejection to get to a yes. You might be the exception and get a check on your first cold email ask. Many of the most successful entrepreneurs I’ve interviewed on the Dealmakers Podcast say they faced many rejections for their first startup. If you can’t take 50, 200 or 300 no’s in order to get your business funded, then you may not get funded.

The same goes for winning customers. Your sales team may have to hit 25, 100 or 1,000 no’s before they get a sale. Especially in the early days.

Are You Pitching The Right Investors?

Fewer rejections and more checks come from pitching the right investors.

You’ll greatly streamline the process of fundraising and save a lot of time and stress by finding the best fitting investors. This will also make doing business with them on your cap table and board a lot easier later too.

Deeply consider the type of investor you want to be involved in your business. Find those who are looking for opportunities like yours already. Provide them your opportunity.

Do You Have A Good Business Model?

When you are asking will Investors fund my startup, remember there will always be a demand for investments in good businesses. A new a crunch or recession driven by poor startups could make it harder and investors more demanding when they consider funding.

Look at WeWork that recently lost 75% of its valuation, as well as some other recent IPO, fails. Some companies are still losing tens of millions of dollars each quarter. They may have a strategy, but if you focus on building a great business, there will always be a market for your business and people will want to fund you.

Alejandro Cremades is an internationally recognized serial entrepreneur, author and fundraising consultant and M&A advisor.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world