Making it big in the world of business needs two things most critically; innovative ideas and money or pre-seed funding!
Ideas are great but money is the key to taking your dreams to the next level. This article is about seed funding, which is one of the most essential things you can do for your business.
Investors from notable seed funding firms have been voraciously investing in African tech startups. They have been the biggest drivers towards knitting a better economic fabric, glorifying the continent.
As to a renowned publication, a survey suggested that African tech startups received 53% of the total seed funding in 2021 as opposed to having received 49% in 2020.
Consequently, if you’re a super-entrepreneur, this article will be one of your most valuable finds on the web. From knowing about what and how seed funding works to knowing all about pitching to the right pre-seed investors for startups. Scroll below to tap into some of the finest opportunities.
Decoding Pre-Seed Funding…
Not at all times, you can walk boldly into the market, asking investors to take stakes in your business. When your idea and business are at their initial stage, you need a more secure type of funding. As such, pre-seed funding is the first investment you receive during your business’ funding lifecycle.
The actions for which you can use your raised pre-seed funding can involve:
- Developing product prototypes
- Market research
- Pilot market campaigning
- Developing minimum viable product
- Allocation for Legal Expenses
Not just entrepreneurs, but pre-seed investors for startups too contributes to the popularity of such type of funding quite significantly. Statistics around funding pattern for investors in pre-seed funding shows that almost 25.5% of African tech startups raised pre-seed capital.
When and When Not, Should You Raise Pre-Seed Funding?
If you belong to the aspiring community of African tech startups, you must know when and when not to knock on the doors of pre-seed investors for startups.
According to experts, the best ways to ask investors for raising pre-seeding are:
- When you meet with investors make casual conversations with them without the intent of being greedy for funding.
- When you contact investors, try subtly carrying crucial identities of your brand. For example, maybe a pen with your business branding.
- Before even getting up to the stage to pitch your funding to the investors. You can speak with many other experts based on unanimous opinion. Analyze if it’s the right time to ask for funding.
When raising pre-seed funding, investors are most likely to be on vacation or unavailable during early summer or end-of-year holidays.
Finding the Perfect Pre-seed investors for Startups
The most crucial angle of raising initial funding is finding a noteworthy investor or venture capital firm. Critically acclaimed and known to have created success stories for countless business owners, Blaq Ventures can be the turning point of your entrepreneurial enroute.
Dreams work only if you wake up to make them a reality – answer the wake-up call
with Blaq Ventures!