Year in, year out, more and more startups will require funding for growth. But the question is: where, when and how can a founder hit luck with an investor? If you’re looking to learn how to raise funds as a startup founder, keep reading.
As 2024 draws to a close, Nigerian entrepreneurs are reflecting on the year’s challenges and triumphs, while setting their sights on a more productive 2025.
The past year focused on the importance of resilience and adaptability, with economic pressures and shifting investor priorities shaping the startup ecosystem.
For a better outcome in the new year, experts are urging entrepreneurs to focus on creating real-time solutions, building sustainable customer bases, and refining their go-to-market strategies.
As the global entrepreneurial landscape evolves, the call is clear: innovation paired with execution will define success in 2025.
Top five (5) tips for founders
In a random post on LinkedIn, Iyinoluwa Aboyeji, Managing Partner at Accelerate Africa, shared practical advice for Nigerian entrepreneurs aspiring to thrive in 2025.
The investor and tech leader, who was responding to a post earlier made by Candice Matthews Brackeen, General Partner at Lightship Capital, highlighted five actionable steps as enumerated below:
- Build great products: Focus on quality and functionality.
- Ensure solutions-based offerings: Address real problems with practical solutions.
- Start with an MVP: Test your ideas on a small scale before scaling up.
- Build a customer base: Establish trust and loyalty among your target audience.
- Have ready-made insights: Back your business decisions with clear data and research.
Techparley understands that his follow-up post amplified Matthews Brackeen’s sentiment where he stated that, “Investors don’t fund slides; they fund solutions. Build something that matters, talk to your customers, and treat fundraising as the fuel for your vision, not the finish line.”
According to Aboyeji, Nigerian founders need to prioritize execution over presentation.
He stated, “…Please Nigerian entrepreneurs, do better in 2025. Don’t come to me with pitch decks; come with products. Don’t come to me with slides; come with solutions. Don’t come to me with costs for launch; come with customers. Don’t come to me with an investment ask; come with insights. Then and only then are you ready to build.”
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Reactions to the post
The post has since garnered commentary from other users on the professional networking site, Samson Amosu, reflecting on the capacity of investors, said: “The truth we (founders) all need to understand is that these guys have limited capacity. Recently, they took in just 10 out of over 1000 that applied for their accelerator program.
“I really understand the challenge they face in making decisions on which idea or startup to invest in considering their limited capacity or available funds. And this is what they don’t talk about well enough but rather continuously talk about what their expectations of what a startup should be. But they enjoy the attention and being in the spotlight. It looks like VC only exists for a few connected and lucky ones. So, don’t be deceived; they need your ‘polished” pitch deck. They can’t believe anything you say without it.”
Collaboration, not competition
Focusing on the importance of collaboration, Alebiosu Sirajdeen stated, “For many of us tackling real-world challenges in Nigeria and beyond, moving from idea to product often requires not just grit and innovation but also access to mentorship and strategic partnerships. While bootstrapping is a path we embrace, support from experienced investors can significantly accelerate the scale and impact of our solutions.
“Your focus on actionable solutions and customer traction resonates deeply. That said, I also recognize that responsiveness and collaboration with investors play a crucial role in transforming insights into scalable businesses. As an entrepreneur, I seek opportunities to align with like-minded partners who share a vision for creating impactful ventures. I would welcome the chance to explore how my work aligns with your approach.”
The power of independence
Meanwhile, another user who simply identified as Talent Hwandih offered a different perspective, advocating for independence: “My message to the young entrepreneur will rather be: Focus on building and not pleasing. Instead of obsessing over pitches, obsess over the product, the problem, and the solution. Baby steps matter! Bootstrap if you must and solve a small part of the problem for a small group of people. Venture CAPITAL AIN’T THE ONLY PATH. Many incubators, accelerators or VCs, despite their experience, are short-sighted in recognising unpolished opportunities.
“Do not chase them for validation. Your customers and the impact you make are the real judges of value. When you start solving problems and proving traction, the same people dismissing pitch decks today will come chasing you. If you bootstrap, build revenue, and start small, you control your journey. Focus on your business instead of approval from those who claim to have all the answers because they have a 100k cheque.
I wish all the young entrepreneurs success in 2025 especially those seeking to create solutions to Address some of Africa’s main challenges.”
Who is Iyinoluwa Aboyeji?
If you’re knew in the tech space, Iyinoluwa Samuel Aboyeji, OON, is a 33-year-old Nigerian entrepreneur and technology thought leader.
He is renowned as the co-founder of Andela and a former Managing Director of Flutterwave, two influential companies driving innovation in Africa’s tech ecosystem.
In 2019, New African magazine recognized him as one of the Top 100 Most Influential Africans.
On October 11, 2022, Aboyeji was honored with the national title of Officer of the Order of the Niger (OON) by President Muhammadu Buhari.
This prestigious award, established in 1963, is Nigeria’s second-highest national honor, following the Order of the Federal Republic. It celebrates exceptional contributions to the nation’s development and progress.
Commentary
- The year 2024 was marked by a cautious optimism in Nigeria’s startup ecosystem. Funding slowed as investors prioritized startups with proven solutions and strong customer traction.
- I am personally delighted that many founders were forced to rethink their strategies, moving from the “growth at all costs” mindset to a focus on sustainability and impact.
- I have observed the trend and seen that while access to capital remains a significant challenge, there’s growing recognition that bootstrapping, collaboration, and community support can lay a solid foundation for success.
- Hence, as the curtain falls on 2024, the key takeaway for Nigerian startups should be clear: to build great products that solve real problems as that will be the ultimate differentiator in the anticipated competitive landscape of 2025.
