Africa has experienced a rampant rise of inventions and startups that have gone a long way from the minds of inventors to disrupting the Sub Saharan ecosystem solving very many problems that have been a setback to the growth of the continent for ages. From the rise of startups in fintech helping in payment related challenges, innovations in media and advertising mechanisms, health sector, eCommerce and so many others. It is evident that through technology Africa will unleash its potential as a continent on the rise with new opportunities coming up thus entrepreneurs with brilliant ideas have the chance to bring them to life.
Starting a startup and scaling it up has not been a walk in the park to many African change makers due to so many prevailing factors and conditions. One of the biggest factor is the struggle to have a sustaining financial muscle that makes it possible for startups to develop their products and services and growing their customer base. The ability of a startup to attract a pool of investors is one of the ways of ensuring a startup survives its initial stages. Investors who believe in an idea have the power to determine the success of a startup but the big question remains on where to find the suitable investors who will pump in finances and advice. Here are several primary strategies startups can use to meet investors.
Cold Call Submissions
There are countless lists of Angel Investor groups online over the internet where you can research and find out what firms do deals in what industries and then send them a proposal to them for review. Be sure that your chances of even getting an answer is at best one percent and your chance of that answer being a yes is about the same as that of getting hit by a car crossing the street while reading this article. The main point is that you really need to have your idea pitched at its best since you are using email to reach out to investors.
Using a Deal Broker
Way back before the internet when dinosaurs roamed the earth, If you wanted to get the attention of an Angel Investor, Venture Capital firms or Private equity firms you had to go to a broker pay a good sum of money to have them develop a plan for you and then use their connections as a broker to introduce you to deal makers. Most of these ‘plan sharks’ as I would call them, are just looking to take money and have no more chance of getting your startup funded than one percent and above.
Online Communities
There are so many online communities such as Gust, SeenInvest and Crunchbase which are a den of high profile investors that out lay what each of the investors are looking to invest in. It is therefore hard to go wrong with a strategy like that and often has a good chance of hearing from the investors
Local Angel Investor Network
Some investors prefer to invest locally. Local investors have access to inside data on local business startups and can plug in you into a good number of opportunities. Most of these networks have a range of the amount of funds they are wiling to put in startups but they offer a good chance for entrepreneurs. A good example is Kenya’s KCB Lions Den.
Retain a Business or Patent Legislator
The best way to get introduced to ‘people who know people’ is to hire the best lawyer or attorney that money can buy, pay the retainer, take them to lunch once in a while then have them introduce you to other clients of theirs that are in a similar industries that can help you move your deal forward. This has a high chance of success and lunch is always good.
Crowdfund It
This happens to be one of the widely used means of funding startups where many small amounts of money are raised from a large number of people over the internet. It involves three parties: The project initiator who proposes the project, individuals or groups who support the project as see it being viable and a moderating organization which brings the parties together Kickstarter being an example
Private Investors
The best chance of getting funded are private investors who are actively seeking and building opportunities. This is a much better odds if you have your act together. If you have something that is ready then it is the best chance of moving forward you will find.