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Startup Funds For Nigerian Entrepreneurs by Revolva(m): 12:26pm On Jun 28, 2018
Nearly every week, we hear reports of startups in Africa raise funds. But what do the different types of funding rounds mean? Well, a funding round is anytime money is raised from one or more investors for a business. They’re given a letter, such as A Round, B Round, C Round, etc. because each round follows another. The letter identifies which number of rounds they’re on. Here, we take a closer look at the types of rounds and what they mean.

Series A round funding
Investing at this stage is usually regarded as high risk because the company will probably still be at the startup stage with a lot to prove.

Angel investors may be interested, but venture capitalists may also invest. Angels usually invest their own money and are often considered high net worth individuals. VCs and other institutional investors tend to invest other peoples’ money, so, they usually only invest in companies with a proven track record to reduce their risk.

Series B funding

A series B round is the second round of funding by private equity investors and VCs. By this stage, the company will probably have a higher valuation than before. The risk will be lower than before as the business will have a track record – so the cost to invest will be higher. Investors will expect to see signs of growth at this stage in revenue, users and product/service success

Series C round

A series C round is needed when a company is ready for rapid growth. The company will usually: have become a proven success in its market, wants to make acquisitions of competitors, increase market share and scale up or develop new products or services.

Venture Capital
This type of situation is different than an angel in that it is an organization of investors. Usually, this type of investor isn’t as interested in the early stages of a startup and prefers to see some return before they get involved. They like to make deals where they know they will get a return so they can be turned off by too much risk. However, they are more likely to invest a larger sum of money, but typically require ownership and to be placed in a decision-making position.

Seed/angel fund
Seed round usually occurs when the company is at the initial idea stage, or once the founder has a prototype/proof of concept, as well as some kind of sign that there’s a demand for what could be offered. Meanwhile, an angel round often occurs when a company is only just launching, if not before. Chances are that it will need an investment to support the business because it probably won’t be generating a big enough cash flow to cover all the day-to-day running costs. Sometimes a seed round and an angel round aren’t two separate rounds, they can be a hybrid of the two. Despite the name, both seed and angel investment rounds usually include a large proportion of funding from friends and family. It can also include money from angel investors who are focused on early-stage companies.

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Re: Startup Funds For Nigerian Entrepreneurs by SheikhMuniru(m): 4:19pm On Jul 04, 2018
IT'S A GOOD IDEA TO INVEST ON WEED RATHER THAN ANY OTHER TIN IN THIS COUNTRY BECAUSE NO BUSINESS DEY OK FOR 9JA AT THIS TIME OF APC

7 Likes 2 Shares

Re: Startup Funds For Nigerian Entrepreneurs by superior1: 4:20pm On Jul 04, 2018
Having your own fund for your startup is the best

12 Likes

Re: Startup Funds For Nigerian Entrepreneurs by Mayfrank(m): 4:20pm On Jul 04, 2018
Angel investor needed for a digital magazine investor.... @vx
Re: Startup Funds For Nigerian Entrepreneurs by gaffyGIFT: 4:20pm On Jul 04, 2018
ok that is good
Re: Startup Funds For Nigerian Entrepreneurs by Nobody: 4:20pm On Jul 04, 2018
Alright
Re: Startup Funds For Nigerian Entrepreneurs by strangest(m): 4:20pm On Jul 04, 2018
came to see fund

1 Like

Re: Startup Funds For Nigerian Entrepreneurs by okey4reel(m): 4:21pm On Jul 04, 2018
No link, how can one get in contact?
Re: Startup Funds For Nigerian Entrepreneurs by tensazangetsu20(m): 4:22pm On Jul 04, 2018
Only like 0.0001 percent of African startups make it to series A. Getting seed funding here is extremely difficult.

1 Like

Re: Startup Funds For Nigerian Entrepreneurs by Nobody: 4:24pm On Jul 04, 2018
shocked shocked shocked shocked

1 Like

Re: Startup Funds For Nigerian Entrepreneurs by jeeqaa7(m): 4:24pm On Jul 04, 2018
H
Re: Startup Funds For Nigerian Entrepreneurs by Nobody: 4:28pm On Jul 04, 2018
Fund 9ja startup at ur peril. Dem go waste ur money dey live lavish

3 Likes 1 Share

Re: Startup Funds For Nigerian Entrepreneurs by hemsquare(m): 4:43pm On Jul 04, 2018
please I need help on profitable business I can start with 1m. I'm thinking of having a shop for soft drink and supply for events. Any idea pls.

1 Like

Re: Startup Funds For Nigerian Entrepreneurs by kaykaymcb(m): 4:46pm On Jul 04, 2018
Contact me for your premium logo for your business...For proof of my work, click the link in my signature.
Re: Startup Funds For Nigerian Entrepreneurs by Lagosfinder(m): 4:50pm On Jul 04, 2018
where is the link to get the fund
Re: Startup Funds For Nigerian Entrepreneurs by FrankTalk1: 4:52pm On Jul 04, 2018

1 Like

Re: Startup Funds For Nigerian Entrepreneurs by einsteine(m): 4:53pm On Jul 04, 2018
This is Nigeria not silicon valley. No series x whatever here,
Re: Startup Funds For Nigerian Entrepreneurs by mostHandsome01: 4:56pm On Jul 04, 2018
hmm
Re: Startup Funds For Nigerian Entrepreneurs by BruncleZuma: 5:06pm On Jul 04, 2018
yeyerolling:
Fund 9ja startup at ur peril. Dem go waste ur money dey live lavish
I'm still learning that lesson cry cry cry cry

1 Like

Re: Startup Funds For Nigerian Entrepreneurs by Xtopher123(m): 5:08pm On Jul 04, 2018
Space booked.. Following Keenly
Re: Startup Funds For Nigerian Entrepreneurs by Nobody: 5:17pm On Jul 04, 2018
People still eat, no matter what. Agribusiness is viable but most Nigerians think they are beyond agriculture, that agric is for the unsophisticated village people. You eat garri but you look down on those who produce it. The fact is there're no other businesses in Nigeria except Agribusiness. We are not developed, so looking for tech or office jobs or investment is self-delusion. The lack of market demand is why businesses are closing in Nigeria. Do the right business that is based on our development level and needs and see how profitable you'll be.

SheikhMuniru:
IT'S A GOOD IDEA TO INVEST ON WEED RATHER THAN ANY OTHER TIN IN THIS COUNTRY BECAUSE NO BUSINESS DEY OK FOR 9JA AT THIS TIME OF APC

1 Like 1 Share

Re: Startup Funds For Nigerian Entrepreneurs by Nobody: 5:38pm On Jul 04, 2018
BruncleZuma:
I'm still learning that lesson cry cry cry cry
once worked for a startup. I quit. It looked lik yahoo. As soon as one oyinbo invested, oga change car, collected driver, started flyin First class, and he began to alter my financial reports. Omo i pick race. D business don crash sha

2 Likes

Re: Startup Funds For Nigerian Entrepreneurs by BruncleZuma: 5:40pm On Jul 04, 2018
yeyerolling:
once worked for a startup. I quit. It looked lik yahoo. As soon as one oyinbo invested, oga change car, collected driver, started flyin First class, and he began to alter my financial reports. Omo i pick race. D business don crash sha
Mehn my belle still dey turn from my last escape from Congo.
Re: Startup Funds For Nigerian Entrepreneurs by boiz2men(m): 7:17pm On Jul 04, 2018
yeyerolling:
once worked for a startup. I quit. It looked lik yahoo. As soon as one oyinbo invested, oga change car, collected driver, started flyin First class, and he began to alter my financial reports. Omo i pick race. D business don crash sha

He was prolly doing it for money. Some of us are passion driven. Someone like me wants to have a name. If an entrepreneur wants to be identified by his product not lifestyle... He wouldn't make such mistakes. People identify with Mark cos of facebook, seun cos of nl, dangote cos of cement.


This should be the focus of every entrepreneur

4 Likes

Re: Startup Funds For Nigerian Entrepreneurs by Bamz(m): 9:25pm On Jul 04, 2018
boiz2men:


He was prolly doing it for money. Some of us are passion driven. Someone like me wants to have a name. If an entrepreneur wants to be identified by his product not lifestyle... He wouldn't make such mistakes. People identify with Mark cos of facebook, seun cos of nl, dangote cos of cement.


This should be the focus of every entrepreneur

This is a very important thread but I'm sure it won't get the attention it deserves. I totally agree with you on people who are passion driven. I don't want to think it's a Nigerian thing. For some startups, bootstrapping is a necessity and the team must be prepared to suffer in that initial stage.

I know so well what yeyerolling was alluding to, and it demotivates a team big time. You can't claim to be a head and you're giving all the bad signals with resource mismanagement. Red flag!!!

3 Likes

Re: Startup Funds For Nigerian Entrepreneurs by buynaijagoods: 9:55pm On Jul 04, 2018
One of this will be inevitable.



Buy and sell made in Nigeria Products on https://buynaijagoods.com .
Re: Startup Funds For Nigerian Entrepreneurs by dljbd1(m): 10:23pm On Jul 04, 2018
This is the type of thread that doesn't exceed page 0
If na gossip now we no go hear word

1 Like

Re: Startup Funds For Nigerian Entrepreneurs by raymod170(m): 4:25am On Jul 05, 2018
Do you own a store or a supermarket? Are you having issues managing records of sales and expenses? Do you want to manage your inventory while getting real time data on all this processes which in turn saves time and provides insights into your business sales, profits and loss then purchase shoplog a software that manages all this process simply by using advanced computing to solve your basic problems faced in managing superstores and inventory

https://www.nairaland.com/4266247/shoplog-v2.3-inclusion-license-fee

1 Like

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