Moderated by Napa Onwusah, advisory lead at Novastar Ventures and managing partner at PlacidCode Labs, the session delved into essential tips for startups seeking funding from investors.

Understanding the Stages of Fundraising

Tosin Faniro-Dada outlined the various stages of fundraising:

• Pre-seed Stage: This initial stage often involves having a Minimum Viable Product (MVP) and a few customers for testing. Funding at this stage ranges from $300,000 to $500,000, sometimes reaching up to $3 million.
• Seed Stage: At this stage, startups are expected to generate some revenue, even if not profitable. Funding can range from $1 million to $5 million, with larger rounds reaching up to $10 million.
• Growth Stage: This stage focuses on scaling the product, with a proven ability to monetize and a solid customer base.

Tito Cookey emphasized that at the growth stage, the focus shifts to market expansion or consolidation, aiming to become a market leader.

Paris VC Firm Breega Launches $75M Africa Fund to Back Early-Stage Startups

Defining Product-Market Fit and Revenue Strategies

Tito Cookey highlighted the importance of balancing revenue generation with key performance indicators (KPIs) such as customer engagement. Founders must determine when to monetize and explore different revenue streams, tailored to their industry and market.

Tosin Faniro-Dada discussed various monetization models:

• Freemium Model: Basic features are free, with premium features available for a fee (e.g., LinkedIn).
• Transaction Fees: Charging a percentage of transactions.
• Subscription Model: Recurring revenue from subscriptions.
• Direct Sales: Selling products or services directly to customers.

Key Criteria for Evaluating Startups

Tosin Faniro-Dada outlined the important factors investors consider:

• Team: Experience and problem-solving skills are essential. The ability to adapt and work with investors is indispensable.
• Timing: The market readiness and the relevance of the pain point the product addresses.
• Market Size: The potential for market expansion and scalability.
• Competition: Understanding the competitive environment and identifying how the product stands out.

Tito Cookey added that governance, delegation, and managing regulatory relationships are essential at the growth stage. He stressed the importance of traction, whether through KPIs or revenue, to demonstrate market leadership potential.

What Investors Look for in Founders

Tito Cookey prefers founders who are driven, operational, and visionary. He noted the importance of having a balanced founding team to ensure both operational efficiency and apt storytelling.

Tosin Faniro-Dada further emphasized transparency, honesty, and self-awareness. Founders should acknowledge their weaknesses and work with investors to address them.

Conclusively, the fireside chat gave startups the very key insights needed to scale through the fundraising sector, achieving product-market fit, and generating revenue. 

ATE 2024 enlightened startups with the required roadmap needed in their journey. This session in particular pointed to the importance of a strong, adaptable team, strategic monetization, and transparency in enabling successful investor-founder relationships.

Designed to provide startups with essential support from Africa Technology Expo (ATE) partners, the event is a platform for innovative startups to gain global recognition even as they receive insights to sharpen their solutions.

From a pool of 200 applications, 10 startups were chosen to present their business ideas to a panel of esteemed judges, which included Fola Olatunji David, Investor and Founding Partner at Kickoff Africa; Arinze Obeizue, VC at Future Africa; Damilola Teidi Ayoola, Head of Platforms & Networks at Ventures Platform; Victor Sada, Head of Ventures & M&A at Interswitch; and Teslim Babatunde, Manager/Team Lead for Fintech and Telecoms at Fidelity Bank Plc.

Selected startups at the ATE 2024 were:

1. Bunce: A Software-as-a-Service (SaaS) startup founded in 2021, Bunce offers a comprehensive platform for business management, including CRM, project management, and analytics tools tailored for small and medium-sized enterprises. The customer engagement platform’s innovative solutions aim to simplify business operations and enhance productivity.
2. Flowmono: Founded in 2022, Flowmono is a B2B SaaS startup providing automation solutions for workflow management. The company helps businesses optimize their processes by integrating various tools and applications into a single, cohesive system, reducing operational inefficiencies.
3. Innocul8: Established in 2022, Innocul8 is a digital health startup focused on providing preventive healthcare solutions through innovative digital platforms. The healthtech offers personalized health recommendations and monitoring services, leveraging AI and machine learning to predict and prevent health issues before they arise.
4. Pasby: Launched in 2023, Pasby is a data and AI startup that specializes in predictive analytics and data visualization tools. The platform helps businesses make data-driven decisions by providing insights and forecasts based on real-time data analysis.
5. Raize: A fintech startup founded in 2023, Raize offers innovative financial services aimed at improving financial inclusion and seamless cross-border payments. The platform provides digital banking solutions, and investment opportunities to underserved populations, leveraging technology to simplify financial transactions.
6. Sync!: Founded in 2021, Sync! is an IT SaaS startup that offers synchronization and integration services for various software applications, enhancing project management, among other offerings. The platform ensures seamless data flow and connectivity between different systems, enhancing operational efficiency for businesses.
7. Pioneon: An AI startup founded in 2024, Pioneon develops cutting-edge artificial intelligence solutions for various industries, including healthcare, finance, and retail. The company’s AI-powered products aim to solve complex problems and improve decision-making processes.
8. RootsHive: Established in 2022, RootsHive is a fintech startup enhancing the business industry with its comprehensive suite of tools. The platform enables businesses to understand trends, analyze customer behaviours, segment customers, track transactions, monitor fraud, manage spending patterns, and facilitate payments and payouts. 
9. The Adulawo: Founded in 2022, The Adulawo is an arts, culture, and tourism startup that promotes African heritage. The startup offers tours, cultural experiences, and a marketplace for African art and crafts, aiming to preserve and showcase the continent’s rich cultural diversity.
10. BeautySpace: Launched in 2024, BeautySpace is a beautytech startup that combines technology with beauty services. The platform connects users with beauty professionals, offers personalized beauty recommendations, and provides virtual makeover tools, enhancing the beauty industry and building brands.

At the ATE 2024, Bunce emerged as the winner of the Africa Pitch Battleground, showcasing outstanding potential and innovation in the Software-as-a-Service sector.