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  Identifying potential investors for your startup is a crucial step in the process of securing funding. Investors can provide not only the financial support necessary to grow your business but also access to valuable resources and networks that can help your startup succeed. In this article, we will discuss some strategies for identifying potential investors for your startup in Africa and Nigeria, along with case studies and examples of successful startups that have secured funding from investors.
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  1. Research Local Investor Networks

One of the best ways to identify potential investors for your startup is to research local investor networks. These networks may include angel investors, venture capital firms, and private equity firms. In Africa, there are several prominent investor networks, such as the African Business Angel Network (ABAN), the African Private Equity and Venture Capital Association (AVCA), and the Ghana Angel Investor Network (GAIN). For example, Paystack, a Nigerian fintech startup that provides payment processing solutions, secured funding from international investors such as Visa, Tencent, and Stripe. However, they also received funding from local investors such as Tencent and Y Combinator, which is an accelerator program that invests in startups.
  1. Attend Startup Events and Conferences

Attending startup events and conferences is another effective way to identify potential investors for your startup. These events provide an opportunity to network with investors and other entrepreneurs, learn about the latest trends and developments in your industry, and showcase your startup to a wider audience. For instance, Flutterwave, a Nigerian payments startup, has attended several events such as the Africa Fintech Summit and the Google for Startups Accelerator to showcase their business and connect with potential investors. Flutterwave has raised funding from several investors including Y Combinator, Greycroft Partners, and Visa.
  1. Leverage Social Media and Online Platforms

Social media and online platforms can also be useful in identifying potential investors for your startup. LinkedIn, Twitter, and AngelList are some examples of platforms where investors often seek out new investment opportunities.
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In Africa, several social media platforms such as Twitter and LinkedIn are becoming more popular in the startup community. Many entrepreneurs and investors use these platforms to connect and network. For instance, Tizeti, a Nigerian internet service provider, leveraged LinkedIn to connect with investors and raise funding. The company raised $3 million in funding from investors such as 4DX Ventures, Golden Palm Investments, and Y Combinator.
  1. Seek Out Incubators and Accelerators

Incubators and accelerators can also be valuable resources in identifying potential investors for your startup. These programs provide mentorship, resources, and funding opportunities to early-stage startups. In Nigeria, several incubators and accelerators such as the Co-creation Hub (CcHUB), Wennovation Hub, and Ventures Platform offer programs and funding opportunities for startups. One successful startup that has leveraged an accelerator program is Kudi, a Nigerian fintech startup that provides mobile banking services. Kudi was part of the Y Combinator accelerator program and has received funding from several investors such as Partech Partners, Khosla Ventures, and Y Combinator.
  1. Build Relationships with Industry Leaders

Finally, building relationships with industry leaders can also help you identify potential investors for your startup. These leaders may have connections to investors or be able to offer advice and guidance on fundraising strategies. For instance, Jumia, a Nigerian e-commerce platform, built relationships with investors such as MTN, Rocket Internet, and AXA. The company has raised over $1 billion in funding and became the first African unicorn (a startup with a valuation of over $1 billion).
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Identifying potential investors for your startup can be a daunting task, but with the right strategies and resources, it is possible to secure funding and achieve success. By researching local investor networks, attending startup events and conferences, leveraging social media and online platforms, seeking out incubators and accelerators, and building relationships with industry leaders, you can increase your chances of finding the right investors for your startup. Featured Image Source: COSA Holdings
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This article was first published on 13th March 2023


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.

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