“One of the ways you convey the operational excellency is in the quality of the plan.”
However, not always a strong and appealing pitch is enough to get your startup its deserving fuel rush. Startup business funding is very critical, especially during the tottering steps. And speaking about funding, venture capital sheerly takes the center stage here.
It is undoubtedly possible to approach startups and venture capitalists separately based on the current economic landscape of Africa. Inseparable almost like two magnetic fragments, startups and venture capital are now assembling in the same playground of business.
According to a detailed, and researched blog on venture capital funding in Africa, almost 75% of investments done in the last couple of years were seen to be via venture capital. This has enormously accelerated the economic growth of the nation and has facilitated bountiful startups thereby the deep encouragement of home-grown financing choices as well.
It is for this reason that you should spend your time reading this article because it will enlighten you about the most efficient ways of getting startup business funding from venture capital in Africa.
The WHEREs and HOWs of the Start
No shying away from admitting that the start of this journey can be a little daunting and also overwhelming at times. You have to worry about,
- The Approach
- The Plan
- The Valuation
- and most importantly, The Right Partner!
1. The Approach
The foremost valuable action that you need to start with while looking for startup business funding is having a very well-defined approach. In times of confusion, you may end up making the terrible mistake of hunting plenty of venture capitalists.
A big no, no to that! Never throw stones in the dark when it comes to your business’s funding. Syncing with your business ideas and objectives, narrow down your search for venture capital. Especially if you are starting a small business startup in Africa, you need to have a clear-visioned approach.
2. The Plan
Every fundraising needs a strategy; a strategy so powerful that it can unlock many doors for your business. To secure venture capital for your business, your move should be very well calculated.
Start answering yourself why you need venture capital funding and to which verticals would these funds be allocated. Treat yourself as the investor and examine how well you know the answers. When you have the answers, you would have the blueprint of the plan already.
However, devising this plan would need the critical data of,
- Financial record of your business
- Performance of your business
- Analysis of pre and post stages of funding
- Defining the real worth of your business potential concerning current market standards
3. The Valuation
Understand all the technical methodologies and correct ways of pitching for your valuation. To have fair and satisfactory equity while raising startup business funding make sure you have the sales and business numbers learned by heart.
When you derive a precise valuation method, you would get lucky enough to crack a deal during the first round with at least one angel investor.
4. The Right Partner
What makes it all count is teaming up with the most seasoned and acknowledged venture capital firm. Known to be the weatherpersons for Africa’s upcoming unicorns, Blaq Ventures can become the essential element of bringing a turning point for your business.
Leading ahead winning countless accolades, and imbibing all the crowning aspects of an acknowledged venture capital firm, Blaq Ventures assists you with pre-seed funding, mentorship, strategic connections, and more.
The Way Forward…
The wholesomeness of the African tech ecosystem is breeding profitably with the colossal contribution of venture capital investments. Breaking the shackles of limited access to startup business funding, critically for small business startups, venture capital investments are forecasted to reach a conquering position of exceeding $10 billion by 2025.
As aspiring entrepreneurs, you must know the worth of it more than anybody else, and make the wisest decision of hopping on with the right team to steer towards the right direction.
Start your business’s revving with Blaq Ventures!