Denis Opudo
The 2018 Nairobi Innovation Week and Tony Elumelu Entrepreneurship Fund are both coming to an end this month. But it will be important to admit that the year 2017 was a successful year for African Startup scene. Jack Ma and Mark Zuckerberg decided to focus more on the African startups. The move helped to open up more opportunities to the startups than was there before.
Many startups managed to get funding in the year 2017. This helped them to carry out their activities with less difficulty. One of the startups to benefit from funding is a Kenyan startup SkyGarden. The year also saw 201 startups receiving risk capital. This is quite different from what used to take place in the past. South Africa was at the top of the table as the country with the highest number of funded startups. The country had 74 startups that received funding. Kenya came second having 46 startups and Nigeria closed the best three with a total of 34 startups.
Africa has always been viewed as the continent with many difficulties. This is from famine to education problems just to mention but a few. These are coming to an end. This is as Angel investors and Venture Capitalists are coming into the continent. But many people have become lazy than before. Many people longer look for jobs but instead, they look for ways that could make them rich faster.
People should learn how not to be dependable on anyone. They should rather work harder on improving their business and view it as their main source of bread. Before any entrepreneur decides to look for an investor they should first make their business ideas into practice. It becomes harder to get an investor without having a tangible evidence of what you want to venture into. One doesn’t just wake up and start up a business then the next day it becomes a boom. One has to go through many challenges. It hence calls for hard work and resilience to be successful.
Many upcoming entrepreneurs are fond of rushing to apply for funds so as not to struggle. Having capital is not the only factor required to run a business. But it is just one amongst many requirements. Many do not take their time to get into investment details before engaging an investor. They only get overwhelmed by the amount of capital they are going to receive. Without fear, we can say that such entrepreneurs are only trading on risky grounds. Entrepreneurs have to ask themselves many questions before engaging any investors. Here are some of them.
Why do I need the capital? Will I be able to use the money to improve my venture?
How many are in the same venture and what makes my brand unique?
What is at stake? Equity? Debt?
Can I be able to operate the business before going for venture capital?
Does my business plan make sense? Practically and financially?
