Nigerian tech founders must focus on business insights to survive funding downturn – Experts

As the global tech venture 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, which includes training end users and customers how to leverage their platforms.

This was revealed at the 2nd Edition of the Africa Cashless Payment Conference attended by Nairametrics.

On applying for funding, founders were advised to focus on exactly how much they need to direct them towards knowing the type of tech funding they need.

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

  • She said, “So it is to create a solution that is sustainable; so business training is important. India had a digital economy policy, what they did is they created a biometric card that has all demographics information, which was an important step towards building the technology usage divide.
  • “That was nearly a national identity, as the card was linked to payment and financial services, same time with cheaper internet access as larger population could become part of it.
  • “By giving access to mobile banking and inexpensive internet services did not mean that people knew how to use the tools. This is why training is important, that is what the digital economy is about; don’t make assumptions that people know,” she said.

She cited that drilled-down training is imperative as it gives people an opportunity to be coached, which is an important aspect.

She noted that about 40% of Nigerians are digitally excluded, which also includes a lot of young people, particularly from vulnerable backgrounds.

  • “The second point that proved effective in India is a nonstop evaluation with effectiveness from the user’s framework. With that evaluation you build a pool of analytics that are critical for coming up with business models, which are evidence-based training models that founders should have the knowledge of experience before raising funding,” she added, citing this is where corporate Nigeria can enable and are scalable with impact. Don’t make assumptions and be considered about who is locked out” she urged.

Adebanji Temitope, CEO, of The Platform Digital Network, an ethical tool for online payment lending stated that challenges for founders related to funding, are not only relying on funding but also building innovative ways to seek funding so that investors can take you seriously.

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

He said the first thing to do as founders comes from building things solid, which gives a clearer idea to get solution to a certain point and having who to get on board, and also Knowing exactly how much you need.

  • “So, knowing exactly what you need will direct you towards knowing the type of tech funding you need,” he said.

For the record: Despite the global slowdown in venture capital for founders, a total of 238 tech startups in Nigeria have raised $2.068 billion in the last 7 years.

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