Raising capital
Why can't I raise capital when everyone says it's available?
The question
Everyone says there's plenty of capital looking for African businesses, yet I've been trying to raise for a year with nothing to show for it. What am I actually missing?
Asked anonymously
2 responses
Deji Adebusoye
Founder, Diary of an African Entrepreneur
The capital is real but so is the shortage of businesses ready to receive it. Investors aren't rejecting you because money is scarce; they're rejecting the risk they can't get comfortable with. Ask yourself three things. First, is your business investable, that is, clean books, clear ownership, basic governance? Second, are you raising to fund proven growth, or to discover whether the model works? Third, do they trust you? In our market, trust is the real currency. Fix the readiness gap before you send another deck. Nine times out of ten, "I can't raise" actually means "I'm not yet investable", and that's good news, because it's within your control. Take a capital readiness test here: https://www.myfunnelfit.com/capital-readiness
Ope Fayomi
CEO, Pullus Africa
I raised nothing for a while, then closed a few investment in a short run. And the difference was traction. We as founders need to start showing the receipts: paying customers, repeat revenue, a metric that's up and to the right. One unglamorous chart of growing monthly revenue beats twenty polished slides. Also, be honest about who you're pitching as a lot of founders pitch the wrong investors for their stage and read the "no" as a market problem. Narrow your list to people who actually fund businesses like yours, at your size, in your sector.