Investment in Tech Start-ups: A global perspective

Year in year out, there is always the birthing of a new idea and if developed it becomes a New start-up company. As the world is changing drastically, people keep on looking out for ways to become better and in tune with modern-day technology. Many tech companies have sprung up because technology is creating value and people are taking the opportunity to also carve a niche for themselves.

The number of startups in the tech industry all over the world is said to have increased greatly by 800% since 2016 till date. And today even the non-traditional venture investors are entering the market and also taking advantage of new ideas and new opportunities by these start-up Tech companies.

According to CB Insights, Global funding for new ventures, Tech start-ups is exploding all over the world to a whopping 157% since last year. Research also shows that as of July 2021, there are more than 700 “Unicorn” Companies around the world with a valuation of over $1Billion popular unicorns.

Here in Africa, Nigeria precisely in 2021 has about 144 Fintech startups making it the highest number of Fintech startups in Africa. With this, a lot of people are diversifying and beginning to learn various skills in Tech to be in tune with where the world is going.

Africa enjoys a very fertile environment for young Tech Entrepreneurs because the youth and its growing population are taking advantage of the opportunities, the application of the emerging technology has the adequate potential to improve access to healthcare, financial and educational services and energy. According to Google “The Tech world has arguably fueled the company’s commitment of a $1billion investment in Africa. Since October 2021, Google is one of the major organizations focusing on grants for start-ups in Fintech, Supporting Entrepreneurship and also significant Infrastructure plan to broaden internet access across the continent.

African Tech Start-up like Opay, Chipper, Kuda and others have become notable brands in the world today, they have jointly raised over $427 billion in 800+ deals in the previous year and are not relenting as they are ensuring they also provide opportunities to other Start-ups.

One of the major reasons the world is investing in Tech Startup is because of the high ROI and to also create job opportunities for job seekers. Global data has shown that Start-ups in Tech has helped in creating more jobs in any country than large companies or enterprises in the other sectors and because of the great investment in Tech in Africa Skills has improved, this has drastically reduced the unemployment problems.

With modernization and creativity that keeps changing the world, more start-ups companies will still spring up. Because more investors are ready to invest, this will also push their brand to the next level, and create an avenue to discover great talents also.

Another reason why investors invest in tech start-ups is that most large tech companies also outsource their tasks to Startups nowadays and that will help the upsurge of cash flow in both ways.

According to McKinsey’s “Harnessing Nigerian’s FinTech potential” From 2014 to 2020 FinTech raised nothing less than $600 million Funding, attracting 25% ($122 Million of the $491.6 million raised by African Tech Start-up in the previous year. The Vice President of Nigeria, Professor Yemi Osibanjo thereby stated that there is a need for Nigeria Exchange Limited (NGX) to woo FinTech firms raising capitals beyond the shores of the country to the nation’s bourse to expand the market.

He further concluded that the sustainability of Nigerian’s FinTech ecosystem would require existing and emerging financial service startups to have adequate access to the capital market.

In other to achieve this, it is important to know that attracting FinTech Unicorns to the market as a viable option for capital raising would set more investors on the path to benefit from the growth of these companies and also create economic wealth. Nigeria also needs to look into developing a good working capital venture and private equity funds to support a small business that has significant growth potential.

For Someone out there looking out on how to get some investors when you do not have the option of pitching your Start-up idea to a panel. Here are some ways to use Tech to find your investors for your Start-up.

Sorting through data on Database app: With this, you can get investors who invest in a start-up like yours and also have a certain amount of existence in a certain region. An example of a database app is Crunchbase pro. It is best you subscribe to be able to harness the opportunities there.

MICROVENTURE: You might be wondering what this is? It is a portal that gives interested individuals access to early and late-stage investment opportunities. Investors contribute as low as $100 to protect that captures their attention. It is a good ground to find investors who are eager to support those who they believe are involved in industry change efforts. The beautiful thing about MICROVENTURE is that it is open to accredited and non-accredited investors

PITCH INVESTORS LIVE: This is currently available from IOS with an Android app on the way. It allows you to pitch ideas to an investor in real-time. The intriguing thing is that those sessions get transmitted by Facebook live to an audience of hundreds of people or more. Each Pitch is stored as a video in a library inside an app, and also on a YouTube channel. As such, you could even get more interest in your business venture than expected.

GUST PLATFORM: It is a software-as-a-service offering, which allows applying for start-up funding through the platform network angel investors or aiming for acceptance into an accelerator program. It is a platform that brings Entrepreneurs and investors from nearly 200 countries together.

LINKEDIN: This is an app that connects with peers for business purposes. As a start-up, it is important to tap into the capabilities of the online platform by using it to improve your real-world interaction with potential investors and vet them.

As a start-up in Tech or any other industry, it is usually best to seek funding through multiple methods, because securing funding for your venture is the most crucial part of the foundation process.

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