Skip to main content

Just Before you Approach Investors


It's Monday, the hustle and bustle has commenced in the streets of Lagos, Just stepping outside to get gas at the closest filling station to fuel my generator I got stuck in a 30 mins traffic, various thoughts immediately started swarming through my head; could this be startup founders running around seeking investors? (lol crazy right? I thought so too).  Immediately, I knew what I was going to talk about today.

Just before you approach Investors, chill and take a few steps back
So here's the deal, as startup founders we all have peculiar problems we're very passionate about solving, it often starts with an idea and then a prototype or MVP of some sort, which in turn leads to beta testing (private and/or public) and eventually market roll out. These different phases often require funds especially if you don't have all the necessary skills to achieve this.
In most western parts of the world (after watching silicon valley series of course, lol), Investors often in the likes of angel investors, etc can seed-fund business that are even just at the "IDEA" phase 'cause as Michael Seibel CEO of Ycombinator told me during one of our conversations; in the United States for instance investors are often scared of missing out on investing in the next "Facebooks" and as such will readily pull out funds to invest in what ever idea seems like the "next big thing".

In Nigeria, the tables are turned, and the conditions are different, Investors are scared about investing in wrong businesses that'll swallow up their funds (especially foreign investors) and as a result are usually very skeptical about investing yet alone at just the idea phase, plus recent happenings in the tech industry in Nigeria about companies shutting down / folding up are not helping.

And that's why I'll advice from my personal experiences, just before you approach Investors; do well to scale your business from just an idea to actually having paying customers. Do whatever it takes, bootstrap as much as you can, crowdfund from friends, family members etc, show that your idea is actually something that people want and you're ready to do whatever it takes to make it succeed, and just like I advised in my previous blog post (click here) identify alternative means of generating revenue that's independent of your online customers (at this time).
And then you can approach Investors.

Thank you for taking out time to read today's blog post, I hope it's really helpful, be good and never stop pursuing your dreams, stay consistent and till we meet again I remain Gerald Okonkwo.

Comments

Popular posts from this blog

Tech Cabals Instead of Tech Eco-Systems?

I've grown tired of hearing the word "Tech Eco-system" what does it really mean? my friends at bite.tech helped me understand it better; 

"a tech ecosystem is an interconnected, interdependent network of various players that combine to create innovative products and services in tech. These players primarily include tech startups; more established tech companies; tech company founders; investors and investment groups; mentors and organisations that provide business support. A successful tech ecosystem allows for many smaller companies to bring innovation to market. "
after reading this it becomes clearer that we're far from having a tech eco-system in Nigeria, though a few people like Mark Essien (boss at hotels.ng), OO Nwoye (the Nigerian) and a few others are endlessly trying to build such environments, our inherent nature to have cabals keeps diminishing the efforts of these great men. 
I'll give you a personal account; I attended a "tech party"…

YCombinator Declares Intention To Start Up In China

High-profile U.S. startup accelerator; Y Combinator is making a push to bring more China-based startups into its program after it announced its first official event in the country. The company has announced plans to enter China and welcome startups in all phases to join their program whether it's at concept phase, product testing phase or fast-growing phase.

Y Combinator said that they are looking forward to meeting and working with more Chinese entrepreneurs and announced the launch of their Startup School on May 19th at Beijing Tsinghua University. The event will be free to attend — though attendees might apply for a ticket — with the goal of showing the benefits of participation in its U.S. program.
Participants of the program will have the chance to work with YC partners, president Sam Altman and founders of YC-invested US startups such as Airbnb and Stripe as well as China-born Raven Tech and Strikingly. Raven Tech; a Chinese AI startup, was acquired by Baidu in 2017.
YCombinato…

Has Mark Zuckerberg Forgotten About Our Satellite?

I have an unconditional love for Mark Zuckerberg (oh Zuck my man, if you've never heard of him, you may now rest in peace), he's one of our most celebrated Tech Heroes for all his accomplishments and immense contributions to new media and the tech community at large. He's recently taken a philanthropic view with his corporate social responsibility projects at Facebook, Africa included.

He Posted this on his Facebook page on the 5th of October, 2015:

He promised to launch a satellite called Amos- 6 in collaboration with Eutelsat to help beam Internet connectivity to large parts of Africa (especially sub-saharan Africa) so people living in remote regions can equally have access to the internet (and grandma can finally signup on facebook lol).
Space X (a rocket company owned by the batman of Tech; Elon Musk) which was contracted to launch this satellite into space so we can start enjoying "beta Internet",  unfortunately, accidentally destroyed this Satellite during one…