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Why Is the Nigerian FinTech Industry The Most Funded in Africa?

Emmanuel Nnaemeka

Tekedia

  Nigerian FinTech is the most funded in Africa. In the recent Google Black Founders funding series, 25 startups in Africa received between $10,000 and $50,000 to upscale. Out of the 25 startups, 18 startups were from Nigeria. There are a lot of factors driving foreign investors to look towards Nigerian startups.
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According to a recent study, the FinTechs in Nigeria are demonstrating that the technology-driven financial industry, primarily propels the current financial and banking initiative. Because of this, any new startup with an extraordinary idea of streamlining financial services opens up a level-playing space to assemble the flourishing FinTech bandwagon in Nigeria. To launch a FinTech startup in Nigeria, one needs capital, and searching for a goldmine can be tedious. Rather, you must go through a complicated procedure about a lot of ifs, but, and circumstances. But before stressing your brain on where to uncover funds for your FinTech startup, it is crucial to take a closer review of your startup idea and the core success metrics. In this article, I point out factors that propel VC capitalists to look towards Nigeria to invest their money in Nigerian startups.
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  1. Feasibility: Is the idea behind your fintech business really feasible, and are the business objectives and goals conceivable? This is the first thing you need to ask.
  2. Demand: Is there a large market for your product? Does the FinTech service you provide have a sufficient, recurring demand? Whether it is popular or sought-after enough, founders must analyze the length, breadth and depth of the demand frequency of their product.
  3. Defined Audience: The founder must have a great idea about the user audience who will use his FinTech solution. The founder must learn to define the user audience clearly for the Solon or service.
  4. A Future-proof Business Model: A founder must know if his FinTech solution is rooted in an endurable and fully future-proof business model. It should be substantiated against developing business challenges.
  5. Define the Short-term & Long-term Objectives: In the world of FinTech, the founder should have clear short-term and long-term goals. In the absence of a clear and time-specific business goal, no business survives.
  6. Dependable Business Network: In the FinTech industry, the founder must have an established business network for running her startup. A network is crucial for Fintech’s durable industry, as fintech solutions and services are principally interdependent.
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Concluding Remarks

In this article, 6 key factors that propel frequent investment in Nigerian FinTech startups have been identified. They include the feasibility of the startup; the market demand; the defined audience; a future-proof business model; define the short-term & long-term goals; and a dependable business network. With these factors in place, a founder has created a business that can attract funding. Featured Image Source: Tekedia
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