Top 3 Reasons Why You Should Invest in African Startups

Read time: 5 minutes.

Welcome to The Eunice Ajim Newsletter, a weekly newsletter where I provide actionable ideas to help you invest in Africa, scale your startup, and live a wealthy life.

I have to apologize as I have not sent out a newsletter in a couple of weeks. But WOW, we had tremendous growth in new subscribers even though I was not active. Thank you for your continued support! 🙏

Hi to the 1724 new members who joined in the last few weeks! If you still need to, sign up to be part of our community of over 9,000+ African funders, founders, and friends.

This newsletter and some of my upcoming newsletters will differ slightly. I’ve created much-written content over the last two years, but it is not always easy.

I realized over the last few months that I prefer video content. I have so many thoughts when I’m in front of the camera. I find my thoughts flow more quickly than when I type them. So, I quietly started a YouTube channel/podcast I’ve posted weekly for the last five months.

I decided not to share about the channel until today because I wanted to prove myself to be consistent and deliver when no one is watching. Even though I have not promoted the channel, you always find a way to find me 😂 . I currently have 58 subscribers and average about 50 views per video.

I recently decided to take it to the next level and record the videos professionally, and BOY, let me tell you… I poured my heart into it. I share all the questions I often get, from “Why don’t I invest in Blockchain?“ to “How did I save enough money to start investing in startups and eventually launching a fund? “

I have released four of those videos and plan on releasing a new video every Wednesday at 8 am Central Time. If you’re someone like me who prefers video content, you’ll love the YouTube channel. Most videos are 10 to 20 minutes, so watching and going about your day is quick.

My newsletter content would continue to be written versions of the YouTube videos or some of my long-form threads but with more juice than what you’ll get following me on social media.

My content is not perfect, but it’s my way of giving back and providing as much free advice to my community as possible, so please be nice. If you disagree with what I say, I’m always open to feedback and hearing other opinions, but try not to be rude. It’s 2024!! 🙂

Now, let’s look at two of the recent podcast episodes:

Top 3 Reasons Why You Should Invest in African Startups

In this episode, I discuss why investing in African startups is interesting. I discuss how I discovered the African tech ecosystem and started investing in startups. Then, explain the different categories of investors, including angel investors, incubators, accelerators, and venture capital funds.

I also discuss the risks and opportunities of investing in African startups, highlighting the technological advancements and abundance of tech talent in Africa. The episode concludes with a call to early investment in the African tech ecosystem.

Takeaways

• Investing in African startups can be less risky than commonly perceived, as many technologies have already been proven in other markets.

• African startups have the opportunity to leapfrog technologies and build solutions that are adapted to the local market.

• Africa has a talented pool of tech professionals who may transition from being employees to becoming founders in the future.

• Early investment in the African tech ecosystem can provide unique opportunities for growth and returns.

What To Look For When Investing in Tech Startups in Africa

In this episode, I discuss what to look for when investing in tech startups. The key factors to consider include the founders and team, their prior experience, traction, product evaluation, market readiness, target customer definition, and revenue and growth expectations.

Takeaways

• The team and founders are crucial to the success of a startup. Look for founders with prior experience and learn from their failures.

• Traction is an important factor to consider before investing. Look for evidence of customer acquisition and revenue generation.

• Evaluate the product and its ability to solve a problem. Focus on the minimum viable product and customer feedback.

• Assess the market and determine if it is ready for the product. Define the target customer and understand their needs and preferences.

• Consider revenue and growth expectations. Aim for significant annual revenue and demonstrate a clear path to scalability.

If you enjoy the podcast episodes, please consider subscribing, liking, and sharing them with your network. You never know who might find this information helpful. 

That’s it!

See you next Wednesday.

I'd love to hear from you:

What are your thoughts on the two podcast episodes? Do you like this format, or prefer I stick to written content instead?

Tweet at me @euniceajim or reply to this email and I'll do my best to get back to everyone.

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