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.

The event was an avenue for African businesses to display their creativity and gain opportunities in the competitive tech industry.

Olatubosun Alake, Commissioner for Innovation, Science, and Technology in Lagos State, delivered a keynote speech on behalf of the State Governor Babajide Sanwo-Olu. Alake highlighted the commendable support Lagos State has provided to the technology and innovation industries, acknowledging the role of tech startups in driving economic growth and social development.

“This event celebrates the ingenuity and resilience that defines our people,” Alake said. He detailed the various initiatives by the Lagos State government, including the support of over 60 startups through the Lagos State Science Research and Innovation Council and facilitating investment for more than 30 startups.

Alake also mentioned the state’s efforts to support research and development projects in universities, noting examples such as medical research on jaundice and artificial intelligence for medical imaging. “Our job in government is to de-risk the research and development process to enable new products and services to be created and scaled,” he explained.

Representing the Managing Director and CEO of Fidelity Bank, Dr Nneka Onyeali-Ikpe, OON, the Executive Director and Chief Risk Officer, Kevin Ugwoke, presented another great keynote speech. Ugwoke spoke on Fidelity Bank’s focus on supporting the African startup industry. “Africa leads a rapidly growing tech sector, driven by a young, tech-savvy population and advancements in mobile technology,” he said.

He highlighted the bank’s initiatives to support micro, small, and medium-scale enterprises (MSMEs), including the VPN Platinum Award 2021 and the Bank’s sponsorship of the Top 100 Fastest Growing SMEs. Ugwoke also mentioned Fidelity Bank’s SME Mentorship Program, designed to facilitate networking and collaboration among entrepreneurs.

“Africa can be the home of emerging economic powerhouses,” Ugwoke asserted, “and Fidelity Bank is dedicated to supporting this potential through strategic partnerships and investments.”

Alake congratulated the participants of the Africa Pitch Battlegrounds, selected from a pool of 200 startups, stating, “Your success is a beacon of hope and inspiration. Let us continue to innovate with purpose and build a future where everyone has the opportunity to thrive.”

Giving the welcome address, Nnaemeka Clinton, Chief Innovation Officer of the Africa Technology Expo, pointed to the commendable growth and innovation within the African tech industry. Clinton noted, “From the wider tech landscape of the African continent to the busy hubs of Accra and Lagos, we have witnessed relentless innovation that is shaping our future.” 

He acknowledged the challenges faced by startups, including competition and the need for more support, but stressed the resilience and potential of African tech entrepreneurs.

Clinton encouraged collaboration and the sharing of successes and challenges, stating, “Our collective efforts will not only enhance our capabilities but also address critical issues facing our continent, leading to a more prosperous and inclusive future.” He highlighted the importance of local startups focusing on user experiences and functionality, with the goal of solving social problems in Africa.