Africa start-up seed funding – For entrepreneurs from the ground up

The phenomenal success stories of tech start-ups across Africa are nothing short of fairy tales. Africa’s  sector is defying global trends and showcasing incredible resilience in the face of increasing economic uncertainty.

According to an article on Bloomberg, the booming technology-dominated start-up sector in Africa witnessed inflows of a whopping $2.7 billion since January 2022.  Start-up funding of rising tech ventures in Nigeria, South Africa, and Kenya experienced a massive growth in 2021 with total investments amounting to more than $5.2 billion. 

Articles on TechCrunch, another major tech news platform, highlight how African tech start-ups around the continent pushed all boundaries when it came to pre-seed & seed funding in 2020. And, there are no signs of any slowing down in 2022!

The tech start-up climate in Africa favours the brave and the shrewd who know how to attract the right kind of seed funding. 

So, what does it take for an aspiring African tech business to draw the attention of angel investors or venture capital firms who know how to create successful entrepreneurs from the ground up?

This article explores.

Attracting Start-Up Seed Funding: Finding the Right Investors

The influx of investments in the technology start-up sector across African countries attained unprecedented growth. Major media publications such as Disrupt Africa, AfricArena, etc., reported one of the largest seed rounds in 2016 of Stripe-subsidiary Paystack, which raised a seed round funding of $1.3 million. 

That was just the beginning! 

Seven-figure start-up fundings are no longer a rarity in the African tech sector. Nigerian Fintech giant Flutterwave, Kenyan e-commerce player Wasoko, and Tunisia’s AI disruptor InstaDeep are just some major names with immensely high seed & series funding rounds. 

How are they attracting such huge funding from major venture capitalists? Here is a synopsis:

  • Timing is Crucial 

Timing is a critical factor in acquiring seed funding. Entrepreneurs should be able to determine when they are ready to offer up a stake in their company and if their product/service has the potential to convince investors holistically.

  • Develop Proper Infrastructure

Fintech start-ups with well-developed infrastructures are a step ahead when it comes to attracting seed start-up funding. Venture capitalists are prioritizing the presence of defined infrastructures when it comes to investments, as infrastructure is critical to continual sustainment & success.

  • Put Yourself & Your Business Out There

Networks are important. Attending seminars and building connections is extremely important for start-ups looking for their dream investors. 

Once you have the right angel investors or venture capital firms on your radar, it is then time to shine the spotlight on your budding business and make a solid but short & sweet pitch that showcases your MVP brilliantly.

  • Build Trust & Credibility

VCs need to understand whether they are making a good investment. And, entrepreneurs must be able to convince them by showcasing credibility in their business model, future goals, and implementation of strategies. 

Building trust & credibility is paramount for acquiring seed funding from investors who are all about creating entrepreneurs from the ground up.

Take Your Business Place with pre-seed Funding from Africa’s largest Venture Capital Firm

Transform and elevate your business with Africa’s leading tech institutional investors, Blaq Ventures.  Get pre-seed funding, comprehensive business mentorship, and strategic support from one of the leading venture capital firms for tech start-ups.

Launch your entrepreneurship sky high and experience incremental growth alongside dedicated mentoring programs, be prepared to get seed funding and have access to follow-on funding.

Apply for start-up funding at Blaq Ventures and rise above.

Learn more here!