Oluwadamilola Elizabeth
It takes careful balancing to go from surviving to succeeding in fundraising in the hard world of entrepreneurship. In order to actively engage with potential investors and manage the day-to-day operations of their businesses, founders frequently have to sacrifice personal time, including holidays.
Sharing their firsthand experiences at the AWS Women's Demo Day in Lagos was Eunice Ajim, the founder of VC firm Ajim Capital, who moderated the discussion. Founders shed light on the nuances of fundraising. Omoyeni Olulana Co-Founder/ Head of Growth at Flex Finance said before seeking to convince others, one must first convince themselves. This self-belief is essential for effectively communicating ideas and attracting investors. By putting oneself in the shoes of potential investors, one can critically evaluate their own idea and identify its strengths and weaknesses. This clarity will lead to more persuasive and confident pitches.
Also, understanding the ideal investor profile is crucial for saving time and effort. By identifying the types of companies that these investors typically support, founders can tailor their approach and messaging to resonate with their target audience. It is important to remember that investment is a relationship, not a transaction. Investors seek to partner with founders who share their vision and have the potential to deliver value.
Furthermor, knowing your ideal investor and speaking their language will significantly increase the chances of success. Generic emails and pitches are less effective than personalized communications that demonstrate a deep understanding of the investor's interests and priorities. The ability to connect with investors on a personal level and articulate the shared vision for the business is paramount to securing funding and building lasting relationships.
The discussion shifts towards valuable advice for startup founders navigating fundraising challenges and sustaining their companies. Chioma Okotcha Co-founder/COO at Payhippo stresses the pivotal role of monitoring operating costs at every stage of business, from payroll to technology expenses. Entrepreneurs are urged to make informed decisions daily, maximizing the utilization of available resources.
Damilola Olokesusi CEO/Co-founder at Shuttlers, echoing the sentiment of going back to basics, encourages founders to reassess their pricing strategies and operational costs. The scenario of a world without further investments prompts a creative shift, pushing entrepreneurs to strategize for survival. The emphasis on recurring revenue and understanding customer needs emerges as a strategic approach to ensure sustained profitability.
Chioma Okotcha further highlights the importance of speed in shipping innovations because according to her it is what will retain the essence of a startup as a fast-growing business.
Conclusion
The important takeaway from this fireside chat is that adaptability, strategic cost management, and continuous innovation are essential for founders to not only survive but thrive in the fast-paced world of entrepreneurship in 2023 and beyond.
