Victor Daniyan nervously stood on a stage in Morocco, pitching his brainchild, Nearpays. The sweat trickling down his face mirrored the intensity of the moment. Facing a panel of seasoned judges and investors, he knew this pitch could change everything.
“These were men who could take any inexperienced founder from zero to everything.”
For Victor, like many first-time founders in Africa, the journey to secure funding is riddled with challenges beyond just presenting a viable business idea. Trust, or rather the lack thereof due to geographical biases, plays a significant role in shaping investor perceptions.
“If a founder is in Nigeria, the risk is higher; the founder could disappear…”
Uzochukwu Mbamalu of Palremit echoes this sentiment based on personal experiences. He highlights how being based outside Nigeria has positively influenced trust-building and fund-raising efforts for his fintech startup.
As these visionary entrepreneurs navigate through hurdles like visa delays and systemic travel bottlenecks that hinder their access to global opportunities, they also encounter complexities tied to foreign investments. The pressure to conform to international standards often leads them to register their companies offshore in places like Delaware.
“We made the US the headquarters… I pay US taxes… even though we’re serving an African market.”
While this move can attract more investors, it comes at a cost—financial strain and operational challenges arise from managing legal entities across borders. Despite these obstacles, founders like Victor Daniyan acknowledge the value that investor networks bring by providing guidance and market connections.
“VCs help you refine your product… connect you with foreign markets they’re familiar with.”
In pursuit of greener pastures for growth and visibility opportunities, founders are increasingly moving abroad or exploring regional markets beyond their home countries. This physical shift not only facilitates networking but also broadens perspectives on diverse market needs.
The surge in founder exodus prompts discussions about striking a balance between global expansion aspirations and maintaining focus on local markets. As startups stretch themselves thin chasing international recognition, there’s a growing need for local investors with regional insights to support sustainable growth strategies.
While foreign investments inject much-needed capital into burgeoning businesses, concerns persist about aligning scaling philosophies with local market dynamics. Despite these challenges, founders persevere—traveling far and wide in search of partners who believe enough in their vision to invest.
Through tales of resilience and adaptability shared by trailblazers like Victor Daniyan and Uzochukwu Mbamalu emerges a narrative of ambition transcending borders—a narrative where trust bridges gaps between geographies for those daring enough to dream big.
