In the bustling arena of entrepreneurship, where dreams collide with reality and ideas are put to the test, we find Victor Daniyan, a determined first-time founder on a mission. Picture this – Daniyan is in Morocco, pitching his brainchild, Nearpays, to a room filled with seasoned founders and investors. The pressure is palpable as he awaits their verdict.
“These were men who could take any inexperienced founder from zero to everything.”
As Daniyan anxiously waits for feedback on Nearpays—a contactless payment solution tailored for marginalized users in Nigeria—he grapples with the financial strains of bootstrapping his startup. Two years of relentless effort have finally borne fruit as Nearpays gains traction in the market.
“Building a contactless payment solution is expensive; more so… without any return on savings.”
However, his dream of attracting investor interest hits a snag when a visa delay prevents him from attending a crucial event at Plug and Play—an opportunity that could potentially catapult Nearpays to new heights.
“This pitch never happened… watching time slip away at the airport.”
But Daniyan’s story is just one among many tales that shed light on the hurdles faced by African founders seeking funding. Trust becomes a pivotal issue for early-stage entrepreneurs like Uzochukwu Mbamalu as they navigate the intricate web of perception and geography.
“Can I trust you? Trust has to be earned—geography plays a massive role.”
Mbamalu’s journey with Palremit—a Nigerian fintech startup carving its niche—reveals how proximity can sway investor perceptions. Operating from Europe now, Mbamalu emphasizes how being outside Nigeria has enhanced trust levels and opened doors to crucial investments.
“For people from Nigeria… trust level increases when they travel out.”
The global funding landscape presents its own set of challenges, with many African startups opting to register in Delaware to attract international investors. While this move may seem strategic on paper, it comes with hidden costs and legal intricacies that early-stage founders must grapple with.
“Creating a Delaware LLC cost about $3,000 but… puts pressure on operational budgets.”
Despite these hurdles, founders like Daniyan acknowledge the value that foreign investors bring—including mentorship opportunities and access to global markets through strategic partnerships.
“VCs do more than invest—they help refine your product and connect you with foreign markets.”
The pursuit of greener pastures sees founders embarking on physical relocations in search of networking opportunities and investment avenues. Mbamalu’s relocation to Dubai proved instrumental in securing vital seed funding that propelled Palremit’s growth trajectory.
“Founders are moving…to build networks and strengthen relationships with investors.”
Daniyan’s dual presence in Nigeria and Rwanda underscores the importance of understanding regional markets firsthand—a strategic advantage for startups eyeing expansion beyond borders.
“You can’t build effectively for a region you’ve never seen—an added advantage for global startups.”
While foreign investments inject much-needed capital into burgeoning ecosystems, there remains an underlying concern about losing focus on local markets amid rapid expansions driven by external pressures.
In this dynamic landscape where trust intertwines with opportunity, first-time African founders continue their quest for validation—one pitch at a time—in hopes that belief will translate into tangible support.
So here they are—packing bags, submitting visa applications—undaunted by setbacks but steadfast in their resolve to chart new territories and redefine success on their own terms.
