2023 is another year for founders to either go to the drawing boards to review the progress of their startups or consolidate on existing successes as this year offers another opportunity for accessing investors’ backing. The idea is this: Nigeria’s startup ecosystem is a vibrant one and investors are looking for where to invest their money in any of the profitable startups.
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In 2022, many startups did not receive funding due to various external and internal factors. However, some were able to pull through and even attracted as much as $10 to $50 million. Such examples include Pivo, Moove, Flutterwave, etc. In this article, I discuss ten things that will make investors back your startup in 2023.
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A clear and compelling value proposition
To attract investors, your startup must have a clear and compelling value proposition that sets it apart from competitors. This should include a detailed explanation of the problem your startup is solving and how your solution is uniquely positioned to solve it. Investors want to see that your product or service has a clear market fit and that there is strong demand for it.
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A strong and experienced management team
Investors want to see that your startup has a team of skilled and dedicated individuals who have the experience and expertise to execute your business plan. This includes a diverse team with complementary skills and a track record of success in their respective fields. A strong management team gives investors confidence that your startup is well-positioned to succeed.
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A scalable business model
Investors want to see that your startup has the potential to grow significantly over time and generate significant returns on investment. This includes a business model that can be easily replicated and scaled as your startup grows, as well as a clear plan for expanding into new markets and generating revenue.
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A robust and defensible market position
Investors want to see that your startup has a strong competitive advantage and is well-positioned to succeed in its market. This could include a unique product or service offering, a proprietary technology, or a strong brand. It’s also important to demonstrate that you have a clear understanding of your target market and how your product or service meets their needs.
Investors want to see that you have a solid financial plan in place, including projected revenue and expense projections, as well as a plan for how you will use their investment. This should include a detailed budget and financial projections for the next three to five years, as well as a plan for generating profits and returning investment capital to investors.
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A strong network of advisors and mentors
Investors want to see that you have a strong network of advisors and mentors who can provide guidance and support as you grow your startup. This includes industry experts, successful entrepreneurs, and seasoned business professionals who can offer valuable insights and advice. A strong network of advisors can also help to open doors and provide valuable introductions to potential partners and customers.
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A track record of achievement
Investors want to see that you have a track record of success, whether that be in previous ventures or your current startup. This could include awards or accolades, successful product launches, or partnerships with well-known companies. A track record of achievement demonstrates to investors that you can execute and deliver results.
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A clear and achievable roadmap
Investors want to see that you have a clear and achievable roadmap for how you will achieve your long-term goals. This should include a timeline for key milestones, such as product launches and expansion into new markets, as well as a plan for how you will measure progress and success. A clear roadmap gives investors confidence in your ability to execute and achieve your goals.
Investors want to see that you have a solid customer base and a strong demand for your product or service. This could include evidence of customer traction, such as pre-orders or a waitlist, as well as testimonials and case studies demonstrating the effectiveness of your product or service. A solid customer base gives investors confidence in the market demand for your product and your ability to generate revenue.
Investors want to know how they will be able to realize a return on their investment, so it’s important to have a clear exit strategy in place. This could include a plan for an IPO, a merger or acquisition, or a buyout by a strategic partner. A clear exit strategy gives investors a clear path for realizing any potential problem and how to go about it.
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This article was first published on 3rd January 2023
nnaemeka-emmanuel
Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.
Comments (1)
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