How to Get Funding for Your Africa-Focused Tech Start-Up
Over the last few years, I have observed quite a few entrepreneurs in Africa trying to raise seed investments for technology start-ups.
Two years ago I raised $150 000 for Tanzania’s first e-commerce travel portal. I have also seen start-ups in Silicon Valley raise money as part of my work at i/o ventures. And yes, I was at Pivot25 last year and realised that there is a significant gap for angel investment, as most investors present said they invest less than $1-million, and had little to no relevant tech experience.
Impact investors are also showing interest in Africa but they don’t seem to be taking any real risk with early stage tech start-ups. Yet technology probably offers the most impactful and scalable change in Africa. But let’s face it folks, raising seed funding is hard enough for any type of start-up, and I would add it’s twice as hard in Africa, even though the continent is uniquely positioned with many international investors recognising the real growth investment opportunities. I see both sides: Africa-originated start-ups coming to Silicon Valley to find tech-savvy angel investors, and foreigners (mostly Americans) trying to raise money for a new market in Africa.
I will start each point with generic advice that is applicable to any start-up, and then hone in on issues relevant to Africa. I hope this will help start-ups navigate a difficult but necessary process if we are to see more entrepreneurial activity and to grow the ecosystem in Africa.
Read the rest of this article at AllAfrica.com
Category: Africa 2.0 | Tags: africa, AllAfrica.com, Business, captial, funding, Silicon Valley, Startups, tech
