In 2018, African startups raised $1.19 billion in funding in the first quarter of the year, but there are many startups in the background that are struggling to raise capital for their venture.
The blockchain Startup outlets are among those many startup sectors facing myriads of challenges. They are struggling to raise funds because they may not be doing some things right.
Raising funds from incubation programs or private investors for African Blockchain can be quite a daunting task and they have lots to learn on ways to raise funds from investment and incubation programs.
Below are some tips on some tips that Incubation Programs look out for in blockchain startups:
When you are an expert in your field, it gives you an edge to get incubated.
There is a better chance of getting funded from investment when your startup is heavily related to tech. Your chances get high when your investors are also in the line of tech.
When it comes to the operations of blockchain outlet, experience and an understanding of the concept is a factor.
Blockchain Utility Use Case
Having a blockchain Startup requires that the challenge you intend solving is a problem that can only get solved by the application of blockchain.
How do you determine this? You need to determine a blockchain use case, by looking at the following:
- Removal of intermediaries or brokers
- Keeping of records permanently
- Storing large amounts of non-transactional data
- Management of contractual relationships or value exchange
- Making transaction public or private
The Market Opportunity
Blockchain solutions have a great tendency for market opportunities existing around the use case. African Blockchain startups with the potential of gaining market traction have the tendency to solve a challenge that can gross big market opportunity.
You would need to consider your market valuation and determine if people need your solution alongside their demography and size.
Other things you might consider in your strategy include:
The cost of investment
You need to determine your financial forecast, your milestones, and your MVP.
Your blockchain startup might have a very viable product to render and this can fetch you good cash, nevertheless, if you are not able to pitch your product well, you stand a chance of shortchanging the value you can offer.
You might consider these steps in how on how to pitch.