Likhwa Tech

Did you know that since 2012 over US$3.4 trillion in venture capital (VC)has been invested around the globe? However less than 0.5% (as in half of 1%) has gone to African startups? The irony is that VC money is literally being thrown at Startups from everywhere. Here's how it works: Just to put things into context- large corporations like Google, Microsoft and Amazon are all on the lookout for new ideas. So they will fund as many ' seemingly good ' ideas and then rely on the probability that one of those ideas will be worth billions. For example- they can allocate a million dollars to 10 startups. That's $100k apiece. Out of those 10, not all will fail, and there's a chance that one could be worth 10x, 20x or even 100x as much within a year or two.  The key however, is that each of these investments should have the potential to recoup the cost of the the other 9 that fail and in addition, bring a profit. So even if 9 out of 10 investments fail, they know that one in

One of the major challenges that startups face is raising capital or acquiring funding to help them start or grow their business. Capital is often exchanged for equity and is used by businesses to build products, hire key staff and expand into new markets. In this article we will cover everything you need to know about startup funding and what you can do to position yourself to get funding. Table of contents i. Factors to consider ii. Sources of funding iii. Types of funding iv. Series funding v. What investors consider vi. Questions to ask yourself before seeking funding vii. Conclusion FACTORS TO CONSIDER WHEN SEEKING STARTUP FUNDING Every business goes through a number of stages during its lifecycle. Just like a baby first lives on milk, before they can handle solid meals, even small businesses need to start with simple funding models and then graduate to more complex ones. It is therefore important to understand the various stages in

"If you were in the States, you'd be far by now" my cousin quipped. At that time I must admit I slightly disagreed. I just thought it wasn't yet my time. Deep in my mind, I hold this belief that when you are truly good at what you do, roads will be built to where you are... regardless if ' where you are ' is in the middle of nowhere. However, I recently stumbled on an article which said over 80% of companies which received venture funding in Africa were owned mainly by non-Africans. The bulk of the remaining 20% were owned by Africans living outside the continent. Not too sure what that implies, but I found it somewhat of great concern. Then yesterday I read another article on Crunchbase , which gave a rundown of stats on tech unicorns since as far back as 2012. For those who might not be aware- i n business, a  unicorn  is a privately held  startup company   valued  at over $1 billion. Since 2012, close to 1000 companies have achieved that status. In total,