Business

A (brief)letter to investors looking to invest in startups in south-southeast, Nigeria

Photo by Olu Eletu on Unsplash

We cant stand around talking about a problem, you take actions and fix them. Every now and then, teams of individuals with innovative ideas on how to make life easier for people keeps popping out of south-southeast and most ideas scale to become great startup businesses having people willing to pay to access its services.

VC’S and Angels know ideas need capital to be executed therefore willing to invest in entrepreneurs with the great business model even if it’s in south-southeast region.

As an investor, before taking a bet in any startup in the region, there are few things to consider.

Infrastructures

Fundamental facilities and systems serving the region are really not at its best and are underperforming. Electricity, Telecommunications(including Internet connectivity and broadband speeds) are two major factors that determine if a startup providing technology-driven services would survive or not. but unfortunately, most areas in the region have a not so fast internet connection and unstable power supply.

For startups, Innovation hubs and Co-working spaces are eflling that gap by providing these facilities to accelerate growth. only users in cities might be able to access online services efficiently leaving an unserved market in rulers areas unless a human touch(middleman) is involved. Reminds me of paga.

Market

Internet startups have strong chances of survival when millennials are targeted customers. The region’s population is about 40% young people aged 18-35 including students and migrants from larger cities (Lagos and Abuja) where technology-driven solutions solve everyday social problems. Cities saturated with startups doing the same things.

South-southeast is an untapped market for these products/services. A ride hailing startup with a well-researched model that’s suites Taxi drivers and car owners would definitely sell fast in cities like Port Harcourt, Enugu and Maybe Owerri because Uber and Taxify had already proved how reliable booking a taxi from your phone is.

Fintech startups in Nigeria have gone on to raise Billions of dollars in funding for simplifying payments, access to loans and banking the unbanked, the Aba’s leather manufacturing clusters alone is a big market for fintech startups to service SME’s and reach revenue stage.

Talents

Never has it been said that the region lacks the talents its needs to get any job done but unfortunately, talent is equally distributed, but the opportunity is not. The region is short of companies to employ its talents causing unemployment to skyrocket.

Hubs are bridging the talent development and unemployment gap. Start innovation hub is a power house building talents with different speciality to build anything. Some of the best Android developers around are products of starthub.

Every state in the region has at least one community focused on improving its pool of talents to be employable anywhere in the world either as a software developer, designers, digital marketer, inventors and anything you could think of, just invest – they’ll get the job done.

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