Great article, but we are not breaking the bank, overly we have attracted less than 1% of the global VC. Is it not a matter of you either learn or win for the ecosystem.
Really enjoyed reading this. A question I've frequently asked myself as I've followed the space closely over the years is, are some startups really going to 100x or truly be worth a billion dollars looking at the exisitng macro of their main operating environment? I'd like to read your views on defining or redefining "success" in the Nigerian (African) startup space. I understand it's not supposed to be easy but I wonder if this redifintion can inform better funding decisions eg Why 10m ARR target in 5 years? Why is revenue still reported in dollars? BTW, I understand the reasons but should we review these is the question? Should the metrics be VC-friendly only?
The way I see it. Digital innovation where most founders tend to self describe their mastery in, is as you said in the past; optimising efficiency. Africa has an industry problem more so than a digital innovation problem. Private equity would always be more attractive an investment vehicle than Venture Capital.
Because most tech startup ideas I have come to see in pitch decks are solutions that require industry solutions at a fundamental level to be solved for first, before they[tech idea solutions] can work. We keep jumping levels and skipping steps because we really want to catch up so bad and be seen as the next billionaire who innovated or invented the future. Prestige, money and the feeling of making your life matter are usually bubbling at the surface when I speak with founders. It's almost disheartening because it means they probably didn't take much time to even figure out if building their product in the macroeconomic dynamics like ours is worth it. Then down the line within 3 to 5 years their startup is lost to the wind and the usual suspects causing these shut downs being manifestations of their primal wants[which isn't building a solution but being among the class of ‘founders’] ; poor management, immature markets, misappropriation of funds e.t.c All which you can say can be attributed to the founders themselves; the entrepreneurs' ego is a double edged sword, even more so in the ecosystem of tech in Africa. Hopefully 30 years from now, those who come later and have better successes would only just have shadows on the wall of the carcasses of startups that died gruesome deaths, hopefully where we are at current doesn't continue.
Solve for problems that matter to a large populace, stop building things that won't scale here yet if behavioural demographics to even the concept is tone deaf(I am looking at you climatetech; well this is not to say it won't work but there are far much more pressing needs and problems for Africa that are levels above a climate problem).
This is one of my favourite articles you’ve written yet. Feels like a pep talk!
To meet the demand for startups, many founders have taken the path of least resistance to create companies. You see all these foreign investors coming into your market, serving cocktails and wonderful canapes at all these restaurants you can’t afford and they want to give money. Your choice is two-fold:
1. Think deeply about big problems
2. Research hacker news during lunch break
Question? Do you think it’s difficult to spot attract the people thinking deeply about problems in Africa or does environment lean towards the ‘hacker’ types more so than in other regions.
Great article, but we are not breaking the bank, overly we have attracted less than 1% of the global VC. Is it not a matter of you either learn or win for the ecosystem.
Really enjoyed reading this. A question I've frequently asked myself as I've followed the space closely over the years is, are some startups really going to 100x or truly be worth a billion dollars looking at the exisitng macro of their main operating environment? I'd like to read your views on defining or redefining "success" in the Nigerian (African) startup space. I understand it's not supposed to be easy but I wonder if this redifintion can inform better funding decisions eg Why 10m ARR target in 5 years? Why is revenue still reported in dollars? BTW, I understand the reasons but should we review these is the question? Should the metrics be VC-friendly only?
Really curious as to your view on these.
The way I see it. Digital innovation where most founders tend to self describe their mastery in, is as you said in the past; optimising efficiency. Africa has an industry problem more so than a digital innovation problem. Private equity would always be more attractive an investment vehicle than Venture Capital.
Because most tech startup ideas I have come to see in pitch decks are solutions that require industry solutions at a fundamental level to be solved for first, before they[tech idea solutions] can work. We keep jumping levels and skipping steps because we really want to catch up so bad and be seen as the next billionaire who innovated or invented the future. Prestige, money and the feeling of making your life matter are usually bubbling at the surface when I speak with founders. It's almost disheartening because it means they probably didn't take much time to even figure out if building their product in the macroeconomic dynamics like ours is worth it. Then down the line within 3 to 5 years their startup is lost to the wind and the usual suspects causing these shut downs being manifestations of their primal wants[which isn't building a solution but being among the class of ‘founders’] ; poor management, immature markets, misappropriation of funds e.t.c All which you can say can be attributed to the founders themselves; the entrepreneurs' ego is a double edged sword, even more so in the ecosystem of tech in Africa. Hopefully 30 years from now, those who come later and have better successes would only just have shadows on the wall of the carcasses of startups that died gruesome deaths, hopefully where we are at current doesn't continue.
Solve for problems that matter to a large populace, stop building things that won't scale here yet if behavioural demographics to even the concept is tone deaf(I am looking at you climatetech; well this is not to say it won't work but there are far much more pressing needs and problems for Africa that are levels above a climate problem).
✌🏾
I really enjoyed this article. If you have ever been pitched, you will find yourself pinching yourself as you read this. Bravo.
This is one of my favourite articles you’ve written yet. Feels like a pep talk!
To meet the demand for startups, many founders have taken the path of least resistance to create companies. You see all these foreign investors coming into your market, serving cocktails and wonderful canapes at all these restaurants you can’t afford and they want to give money. Your choice is two-fold:
1. Think deeply about big problems
2. Research hacker news during lunch break
Question? Do you think it’s difficult to spot attract the people thinking deeply about problems in Africa or does environment lean towards the ‘hacker’ types more so than in other regions.