“We can close this round in the next 3 months.” “Haq haq haq” is usually my response. This is not Silicon Valley oo na Accra we dey. This stuff is not easy and I think i should start commending companies and founders that raise money because there’s an ENORMOUS amount of work to be done, if you decide to go that route. Of course, this also depends on the particular investor and their due diligence requirements. this isn’t SV where a founder can receive a term sheet after a 30 minute conversation with an angel. Early stage investments are probably the most drawn out investment processes (in this part of the world) because no one here wants to lose money on these high risk bets. (and this is while Western investors are throwing money at early stage ventures because they’re looking to get in on the next Uber/ Airbnb? hmm 🤔) But we know that, where there’s no risk, theres no reward. What I have below is a message a client forwarded my way (he got this from another founder) and it tells a lot about how difficult raising money for startups is. I’d talk about my experience helping clients raise funding in another post. But for now, everyone should be aware of the fact that nothing is easy. So all my friends who think being an entrepreneur is a walk in the park and want to be associated with this sexy term should probably think again.t. Running your own business is not a matter of “being your own boss” but of solving a pertinent problem with a compelling solution that has a strong defensibility, a top notch team and a bunch of other goodies. FYI if you want to talk through an idea you have, message me. I promise to be ruthless in my feedback. 🙂
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“I have this idea and I need investors” virtually every entrepreneur has said this before or continue to say it. “I need someone to give me $XXXXX for this amount of equity.
I had that same mentality when my first startup got accelerated in Dubai. In my mind, investors were going to throw money at my feet during Demo Day.
Rude awakening. What you read in the articles and see on TV shows remain what they are: Reality TV show.
It failed. I came back broke. That’s how things work in real life often.
Then we started something else and decide to fundraise again. My team and I have been privileged to raise two rounds of funding. No we’re not out of the woods yet. Trust me, no money is ever enough when you’re in a growth phase.
This is what happens when you try to fundraise. You will talk to almost every investor that walks on the surface of the earth. For every 200 investors you speak to, about one or two will fund you (if you’re extremely lucky).
Many investors will back out during your fundraising process. They will cite several reasons that can break your heart. You will attend competitions, conferences and forums around the world. You will speak till your jaws hurt. You will have to explain your idea over and over again.
You will be turned down on several occasions. Your email will go unanswered. They will require copious documents that can break your mental psyche. You will think you’re so close getting it and then bam! You’ll be dropped.
Over the last 14 months I have read more rejection letters than positive ones. I have insulated myself against these.
I remember walking the cold streets of Geneva with Alima Bawah (co-founder of Cowtribe). We attended one investor cocktail where we spoke till our jaws hurt. Nothing positive.
You need a lot of fallback plan during fundraising and a good shock absorbers. We have raised debt financing from a rabid investor who breathed fire down our neck. I stopped going to Whatsapp because you will read abusive messages from him. Eventually it was paid off!
***If you need to fundraise, start the process early, don’t wait till you need money before you go chasing it.***
Have good shock absorbers also. Finally don’t be judgmental. You will talk to atheists, people in the LGBT etc etc.
God/Allah won’t drop money from heaven. He will use people to give it to you...
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As you may be able to tell, I spend a good amount of my time reading long forms. I love them. Especially Wait but why—Tim Urban is a phenomenal writer. My favorite website in the world. Also watch out for Jason Njoku’s articles. Equally phenomenal writer.
Article List—Articles I’ve read in the past 24 hours or so
What The Rich Teach Their Kids About Money… And What The Poor Do Not!
Once listed for $1 billion. Sold for $100,000. What just happened?
Scoop: Construction tech unicorn Procore seeking to raise $112.5M
Cloudflare's IPO filing at a glance: rising revenue, falling losses and risky customers
Podcast— What I’m listening to throughout the day…sometimes
Acquired - Listened to the episode on Lyft again after their IPO. Acquired is a podcast about technology mergers and acquisitions and IPOs btw. If you’re interested in learning the history and facts behind the biggest/ most relevant tech acquisitions and IPOs, listen here. This episode is described as “The dawn of the APLUSS era.” Let me know if you can guess what APLUSS means. I may or may not have a prize for whoever gets it first.
Beyond the grid- It’s a F1 podcast. Preview of this episode: It’s the F1 summer break, and on this week’s episode Tom has trawled through the archives and picked out six of his favourite anecdotes from Season 2 so far. We won’t give anything away, but listen out for gems from Kimi Raikkonen, David Coulthard and Jean Alesi among others. So whether you’re a diehard fan or a new listener to the show, sit back and enjoy some fabulous F1 conversations with the best in the business…
Entrepreneur Elevator Pitch- This podcast helps me refine my investment thesis and know what kinds of questions to ask entrepreneurs when I meet them. Episodes are fairly short but you get a broad understanding of what investors look for in businesses.
Book—What I’m reading now or in the recent past or want to read…my book list is nearing 1000 books 🌚
Just got a new recommendation— I do not come to you by chance. Very apt since we just read about the scandal with Invictus Obi. Seems kind of funny that I learnt about the book at this exact time. Anyway…
Another book is AI Superpowers: China, Silicon Valley, and the New World Order. I’ve got the PDF if anyone wants it.
Remember folks: “until the lion learns to write, every story will glorify the hunter.”