Nigerian tech founders need to focus on business insights to survive funding downturn: experts

As the global tech business climate reduces activity due to rising interest rates – ending ten years of easy money for global investments – Nigerian startup founders need to focus on key business metrics and insights in their field, including training end users and customers on how to take advantage of their platforms.

This was revealed at the 2nd edition of the Africa Cashless Payments Conference attended by Nairametrics.

When applying for funding, founders were advised to focus on exactly how much they need to steer them towards the type of technology funding they need.

Dr Miriam Onyebujoh, a consultant in corporate social responsibility and applied health technologies, noted that having business models when funding is tight is important and donors want to see results.

  • She said, “So it’s creating a solution that is sustainable; so business training is important. India had a digital economy policy. what they did was create a biometric card that has all the demographic information, which was an important step towards building the gap in the use of technology.
  • “That was almost a national identity, since the card was linked to financial and payment services, at the same time that Internet access was cheaper, since a larger population could be part of it.
  • “Giving access to cheap mobile banking and internet services didn’t mean people knew how to use the tools. That is why training is important, that is what the digital economy is all about; Don’t make assumptions that people know.” she said.

He cited that detailed training is imperative as it gives people the opportunity to be trained, which is an important aspect.

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He noted that around 40% of Nigerians are digitally excluded, which also includes many young people, particularly from vulnerable backgrounds.

  • “The second point that proved to be effective in India is a continuous evaluation with effectiveness from the user framework. With that evaluation, he creates a set of analyzes that are fundamental to generating business models, wThese are evidence-based training models where founders need to have the knowledge of experience before raising funds.” he added, citing that this is where Nigerian companies can enable and scale with impact. Don’t make assumptions and be aware of who is excludedshe urged.

adebanji temitopo, The CEO of The Platform Digital Network, an ethical tool for online payday loans, stated that the challenges for founders related to funding depend not only on funding, but also on creating innovative ways to seek funding so that investors can take it seriously.

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  • “You see founders raise $2-10 million and run out of cash 18 months later. There is a call to action for founders to find ways to create solutions for themselves before they can be taken seriously.
  • “First, founders need to build solutions to the point where they are taken seriously and investors need better access to platforms for hard-working solutions.

He said the first thing you as founders need to do is build solid things, which gives you a clearer idea of ​​getting a solution at a certain point and having someone to bring in, and also knowing exactly how much you need.

  • “So knowing exactly what you need will direct you to the type of technology financing you need.” he said.

For the record: Despite the global slowdown in venture capital for founders, a total of 238 tech startups in Nigeria has raised $2,068 million in the last 7 years.

  • This is much higher than any other African country received in the period. Nigeria is the most popular investment destination on the continent.
  • According to the Nigerian startup ecosystemReport 2022, Nigerian startups have so far raised a total of $747.9 million this year.

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