—
The Pressure of Pitching
Victor Daniyan, the CEO of Nearpays, stood nervously on stage in Morocco. The panel of judges, seasoned founders and investors, scrutinized him as he pitched his contactless payment solution. The stakes were high; a chance to secure funding that could transform his startup.
Daniyan’s journey was not easy. He had bootstrapped Nearpays for two years, pouring his savings into a product he believed in. Finally gaining traction, he set his sights on attracting investors at a prestigious event. However, a visa delay dashed his hopes, highlighting the systemic travel barriers African founders face.
The Challenge of Trust
Uzochukwu Mbamalu, CEO of Palremit, shared his experience navigating trust issues as an African founder seeking funding abroad. He discovered that mentioning Nigeria often led to skepticism and closed doors in conversations with international investors. Geography played a significant role in building trust; being physically present in key markets increased credibility and access to funding opportunities.
For early-stage founders like Mbamalu and Daniyan, gaining trust and securing investments was an uphill battle. Local perceptions about Nigerian startups posed challenges that forced them to look beyond their home country for validation and support.
The Complexities of Foreign Investments
While foreign investments brought much-needed capital and expertise to African startups like Nearpays and Palremit, they also introduced complexities. Founders often registered their companies in Delaware to attract international investors easily but faced legal and operational challenges operating outside their home markets.
Daniyan’s decision to register in the US not only incurred additional costs but also raised questions about where the value generated by the startup ultimately resided. Balancing global perceptions with local operations became a delicate dance for these entrepreneurs seeking growth opportunities beyond Africa.
Seeking Greener Pastures for Growth
The founder exodus from Africa was not just driven by financial motives but also by the need to establish networks and relationships globally. Mbamalu’s relocation to Europe opened doors to new partnerships and investment prospects that kick-started Palremit’s growth trajectory.
Daniyan’s strategic move between Nigeria and Rwanda allowed Nearpays to explore expansion opportunities in East Africa effectively. Being physically present in different markets enabled these founders to understand diverse consumer needs better—a vital asset for scaling their businesses successfully.
In conclusion, while global mobility offers promising avenues for African startups seeking funding and growth opportunities beyond local borders, it also presents challenges that require careful navigation. As more founders venture out internationally to attract investments, establishing strong roots locally before expanding globally remains crucial for long-term success.
