After 4 years of investing in Africa, here's the one thing I've learned:

African founders are 10x tougher than Western founders.

If they can build a profitable business with no electricity, imagine what they can do with $1M in funding. When we talk about the African startup ecosystem, we talk about the challenges.

We talk about the lack of infrastructure, financing, and regulation.

But, what we forget to mention is the tenacity of African founders.

They don't take no for an answer.

You don't need a pitch deck to start.

You need to start to pitch: A pitch deck is a tool to communicate a business idea.

But, it takes more than a pitch deck to execute an idea.

This is why you need to start building before you create anything else.

Here's what NO ONE tells you about evaluating African tech startups.

The frameworks from Silicon Valley DON'T work here. Here's my evaluation method: Silicon Valley investors analyze startups based on their ability to innovate.

African investors analyze based on viability.

Can the company survive, grow and generate positive return in a challenging operating environment?

Everyone talks about investing in tech startups, but no one tells you how you actually make money.

Here are 5 exit strategies to make money when backing the next tech unicorn: 1. IPO

This is when a company goes public and sells shares on the stock market.

• If you invested early, you can sell shares for a large profit.
• If the company is successful, you could earn a 10x, 100x, or 1000x return on your investment.

An IPO can take years. Be patient.

Startups are experimental science.

Most don't appreciate this.

Here are 7 contrarian beliefs on How to evaluate startup ideas: 1) Venture capital is not the only way to fund a startup.

Most successful businesses have been bootstrapped.

You can launch a B2B service company for less than $1,000.

Not all ideas require massive infusions of cash.

African tech is hot garbage, but there's a lot of money to be made.

Here's how I'm using VC to make a killing. African tech is fragmented and underdeveloped.

But there's an advantage to investing in it right now.

Few people are doing it.

Think about:

→ The population is set to double by 2050.
→ Innovations will be necessary to support that growth.
→ Infrastructure is improving.

African startups aren't just innovating, they're disrupting.

Here's why that's a good thing. Disruptive startups don't just improve existing products, they replace them.

By doing so, they fundamentally change the way we do things.

This kind of radical transformation is what African startups are trying to achieve.

Bootstrapping is not a badge of honor, and VC funding is not evil.

Both routes have pros and cons.

I'll share two scenarios for when to raise capital and when bootstrapping might be the better option. Scenario 1: Raising Capital

If you have a clear vision of a problem you want to solve, and it requires building a complex solution, you might need to raise capital to get started.

The million-dollar question:

Why do some startups get noticed by VCs while others don't?

Let's explore the 8 aspects that make VCs take notice of startups: 1. Founder-story fit

Investors look for founder-market fit.

→ Is the founder passionate about the product?
→ Does the founder have expertise in the industry?

Investors invest in people, not just ideas.

Should African startups IPO in the US or their local markets?

We all saw what happened to Jumia and Swivel.

Here are my thoughts on what lies ahead for Africa's future IPOs in markets like Nigeria and South Africa: The main reason African startups consider US IPOs is access to a larger pool of capital.

This was never a bad decision, as it allows access to a larger pool of investors and a higher level of liquidity.

What motivates investors to back a startup?

I've seen so many founders pitch with the same points, and they only guess at the answer.

Let me tell you what really motivates me as an investor.

Here's what I'm looking for: 1) An exceptional team

I'm looking for a team with a track record of execution, strong domain expertise, and a bias for action.

Ideally, the team has worked together before.

A team is more important than the idea because they can execute on any idea.

The ultimate decision-maker in a startup.

Who should be the CEO among co-founders?

Here are 5 criteria to decide: 1) Visionary:

The CEO sets the company's vision and inspires others to follow.

The CEO must be able to:

- Articulate the vision
- Communicate it effectively to all stakeholders

This ensures alignment and direction.

Don’t build a marketing team.

Build a media company for your niche. We’re in a world where anyone can be a media company.

Platforms like Twitter (X), Linkedin, TikTok, Instagram, and Youtube have leveled the playing field.

If you can create valuable content for your niche, you can build a media company.

1 hour of speaking to your customers a day for 6 months will change your startup life.

Here's how

- THREAD - Picture this:

You spend weeks, months, even years building a product that you're passionate about.

You put your heart and soul into it, making sure every detail is perfect.

But what if you built the wrong thing?

What if you're the only one who thinks your product is amazing?

Co-founder fights can ruin startups.

My 8 rules for co-founder relationships: 1) Have the hard conversations before you start

What is each other’s expected contribution, equity, and responsibilities?

What happens if one of you wants to leave?

What’s your vision for the company?

Set these expectations in stone.

Behind the scenes on the world's best funded startups.

What and when top founders are emailing to investors: In the early days,
Founders email investors weekly.

As the company grows,
Communication becomes more structured.

Most founders only email investors when:

1) Signing a new deal
2) When they need more money
3) Quarterly updates

Here are 10 basic fundraising terms every African founder must understand: 1) Equity

Equity is simply ownership in your company.

It is expressed as a percentage whereby the equity amounts of all investors and shareholders add to 100%.

For example, if I have 5% equity in your company it means I’ve got 5% ownership.

I recently had coffee with a successful VC who has been in the industry for over 2 decades and asked him for advice on investing in African startups.

His answers were shocking. Here's what he said: 1. "Never invest in a startup whose founders have never failed before."

Why?

They won't know how to handle it when they eventually do.

When it happens, it could lead to disastrous consequences.

Bootstrapping or venture capital - which path should you take for your startup?

This thread explores both sides, the pros and cons, and what it takes to make either path a success: Bootstrapping:

Pros:
◦ You maintain complete control
◦ No need to answer to investors
◦ Focus on profitability
◦ Build at your own pace

Cons:
◦ Limited growth potential
◦ Limited access to resources
◦ Longer time to market
◦ Higher risk

For African startups, the road to a $1 billion valuation is long and hard.

Let's take a look at 8 ways African startups can reach the Billionaire Club by learning from their US counterparts: 1) Solve a big problem.

US giants like Amazon, Google, & Facebook solved big problems and transformed industries.

African startups like Andela, Flutterwave, & Paystack solved big problems like access to talent, payments, and financial services.

You started something, put your life into it, and every day it doesn't move is another day you wonder if you're throwing your life away.

If that's you, here are 7 ideas to get your startup moving: 1. Decide on ONE key metric and track it obsessively.

Revenue, traffic, conversion rate - whatever it is, focus on it and track it consistently.

This will give you a clear idea of how your startup is performing and how to best optimize it.