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African Pre-Seed #04 - Vibe Check with Tayo Akinyemi
The Trajectory Africa explores the trajectory or pathway of venture capital and startup formation in Africa. It aims to identify a destination for African tech and the signposts that signal the direction of travel. The series came in the wake of Tayo co-publishing a report called Chasing Outliers, Why Context Matters for Early Stage Investing in Africa, distilling conversations she had with over 100 founders, investors and LPs about how VC works in Africa, given the numerous contextual differences in market size, market conditions, and consumer preferences— relative to, say, VC in Silicon Valley.
Top Founder insights trending in this episode:
- Be clear about the true size of your market, especially if you're building a B2C business. The share of disposable income you're trying to capture is probably being split across several alternative solutions. [0:25]
- Know a secret about your chosen industry to tap unmet demand— knowledge that gives you an edge. [5:17]
- Put money in your customers' pockets if you can. People spend more with you when you help them earn more. [8:52]
- Be very clear about what type of business YOU want to build. Very few businesses are VC-backable. [11:58]
- Manage your fundraising expectations by getting to grips with how VC works. [15:27]
- Knowing your numbers, especially how your venture makes money, will help you better understand how VCs make investment decisions. [18:20]
CONNECT VIA SOCIAL MEDIA:
Are you a tech Founder or investor looking to gain more insight into VC investing in Africa? Tell us why or why not. Let us know on social via the #APSVibecheck #AfricanPreseed hashtag.
- ARTICLE: One size fits all view on Africa and other mistakes VCs make by Stephen Timm (Ventureburn).
- ARTICLE: Africa's growth in the digital economy and VC investment landscape by Tage Kene-Okafor (TechCrunch).
- ARTICLE: A peek into the future of African VC by Tayo Akinyemi (The Trajectory: Africa).
- REPORT: Venture Capital in Africa by African Private Equity and Venture Capital Association.
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