According to the 2018 African Tech Start-up funding report, released in January 2019, by Disrupt Africa, Nigeria emerged, as the premier investment destination, on the continent, with 58 start-ups, raising a total of $94.912 million.
Funding is, probably, the most important component, for a start-up, especially, if they intend to grow, quickly, or, whether, it is for faster development, better marketing, or, sales. Without a reliable funding source in place, start-ups struggle to achieve significant traction, to develop the next generation of products, or, services, hire top tier talent and more.
In Nigeria, even, though, there are early stage start-up investors and venture capitalists, funding is still a major challenge. I recently had a chat with Nwanne Okafor, Former Executive Secretary, Lagos Angel Network and she spoke extensively, on the role of Angel investors, in giving more support to entrepreneurs in Nigeria and lots more, on Tech Trends on Channels Television.
CFA: Who is an Angel investor?
Nwanne: An Angel investor is one, who believes in the next generation. He is one, who wants to invest his time, his money and his expertise, in the next generation. He is one, who gives money. He is one, who mentors the younger generation, towards, making them a success, in their own time.
CFA: In your opinion, do you think we have enough Angel investors in the country?
Nwanne: No, we don’t have enough Angel investors in the country. If we are over 200 million people in Nigeria and let’s say, we have about, 50 million working class. Let’s just leave it at that and we have a thousand people investing, then, it’s not enough. There is the need to have more.
CFA: Start-ups complain that, they don’t have access to funding. What has been your experience?
Nwanne: Well, maybe, again, getting money is, not because, you’re an entrepreneur and you just get the money. It’s not just that. You have to be ready for investment. We have to be sure of what you are doing, so, if you just because, you’re an entrepreneur and you say, you want money, you just don’t get it like that.
You have to jump through all the different hurdles. You have to make sure that, whatever you’re doing is investment-worthy and is investment-ready. If you are not investment-ready, you cannot get the money,
You can watch the full interview here