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.

The firm has already secured commitments for approximately 70% of this capital, enhancing its expansion drive beyond Europe.

Breega, known for its founder-centric approach, has established a strong presence in Europe with a portfolio of over 100 startups across 15 countries and $700 million in assets under management. 

The new fund, titled “Africa Seed I,” is Breega’s first move outside of Europe, coinciding with the opening of new offices in Lagos, Nigeria and Cape Town, South Africa. 

These offices will complement Breega’s existing locations in Paris, London, and Barcelona, enhancing its reach across the EMEA region.

Breega’s decision to focus on Africa is linked to the continent’s growing tech industry, which has seen venture capital investments grow from less than a billion dollars annually to a record $6 billion. 

The firm plans to invest between $100,000 and $2 million in startups across key African markets such as Nigeria, Egypt, South Africa, and Kenya, as well as Francophone countries including Morocco, Senegal, Ivory Coast, Cameroon, and the Democratic Republic of Congo. 

The new fund is backed by institutions including Bpifrance and the Dutch entrepreneurial development bank FMO. 

Leading the Africa fund are Melvyn Lubega and Tosin Faniro-Dada, both bringing commendable entrepreneurial and operational experience. Lubega co-founded the edtech unicorn Go1, while Faniro-Dada served as the CEO of Endeavor Nigeria.

Breega’s investment strategy focuses on high-growth sectors such as agritech, edtech, healthtech, fintech, logistics, mobility, energy, and climate tech. The firm reiterates addressing the core needs of Africa’s rapidly growing population, which is expected to reach 2.5 billion by 2050.

The Africa Seed I fund aims to make at least 40 investments, with Breega already backing nine startups, including Numida, Hohm Energy, Socium, Klasha, Kwara, Coachbit, and Sava. 

Breega’s hands-on approach includes an innovative team supporting portfolio companies in areas such as go-to-market strategy, talent management, governance, branding, and communications.

The company’s expansion into Africa is driven by the recognition of the continent’s potential and the desire to replicate its European success. Beyond capital, Breega will offer support and international exposure to help African startups scale and thrive.

He brings a comprehensive regulatory understanding and supervisory experience to solidify Flutterwave’s dedication to upholding the highest regulatory, compliance, and governance standards.

Mr Fatokun’s over 30 years of experience covers multiple competencies in banking services, finance, strategy, advisory, leadership, and management in both the public and private sectors.

As a Director at CBN, oversaw key initiatives such as the Cashless Nigeria Initiative, the Bank Verification Number project, and the Treasury  Single  Account  (TSA) for the Federal Government and automating the foreign currency payments for the Central Bank’s internal and external customers.

His expertise will enhance Flutterwave’s commitment to the ecosystem’s best practices as the company moves ahead on its next growth journey.

Also joining the board is Tosin Faniro-Dada, a distinguished ecosystem builder and investor empowering tech founders across Africa, as an Independent Non-Executive Director.

With more than 17 years of experience in finance, specializing in corporate banking and investment management, Tosin’s career started with auditing mutual and private equity funds at PwC in Boston.

Now a Partner at Breega, one of the fastest-growing early-stage VC funds in Europe and Africa, she supports founders in solving significant economic and social challenges.

Her wealth of knowledge, solid expertise, and passion for the ecosystem will contribute to Flutterwave’s unmatched role as an enabler for tech startups across Nigeria.

Welcoming the new board chair, and the non-executive director, Olugbenga “GB” Agboola, CEO and Founder of Flutterwave, said:

“As a company, we’ve gone through different organizational changes in our growth journey, but one thing remains steadfast – our commitment to maintaining the highest regulatory and operational standards. I am particularly excited to welcome Dipo Fatokun and Tosin Faniro-Dada to Flutterwave. Their combined experience and expertise will be invaluable as we continue supporting the creation of a well-regulated ecosystem and conducive environment for tech companies to thrive.”

Mr Fatokun has been a member and chairman on more than 5 boards in the last decade. Presently, he chairs the Board Audit and Governance Committee of United Capital Plc. Additionally, he serves as the managing partner at Jasfolim Consulting, contributing to transforming Nigeria’s payment system via advisory services for public and private companies.

Commenting on the appointment, Dipo Fatokun stated:

“I am pleased to be appointed as the new Chairman of Flutterwave Technologies Solutions Limited. The company plays a vital role in the fintech ecosystem across Africa. I’m looking forward to supporting the company’s goal of being a model fintech company that advances payment innovations while upholding the highest  regulatory and compliance standards.”

Mr Fatokun has been a member and chairman on more than 5 boards in the last decade. Presently, he chairs the Board Audit and Governance Committee of United Capital Plc.

Additionally, he serves as the managing director at Jasfolim Consulting, contributing to transforming Nigeria’s payment system via advisory services for public and private companies.

“I am thrilled to join the team at Flutterwave Technologies Solution Ltd as a member of the Board of Directors,” says Tosin Faniro-Dada.  “The company’s commitment to innovation and its dedication to transforming the financial landscape aligns perfectly with my own passion for driving positive change in Africa. I look forward to contributing to the company’s strategic initiatives and playing a role in shaping its future success, she added.

This appointment closely follows Flutterwave’s recent compliance, regulatory, and risk-focused hires. In December 2023, the company announced many world-class executives, including Amanda Ortega, a former regulator with the State of Wyoming’s Division of Banking, as Head of Compliance, US.

Flutterwave will maximize Mr. Fatokun’s board leadership and wealth of experience, alongside the expertise of those recent hires, to reinforce its culture of transparency, integrity, and accountability.