Denis Opudo
Africa tech startups require more financial linkages to support innovative investment and to improve service delivery. During the Africa Tech Summit held in Kigali last week, negotiations for angel investing in Africa tech startups was the main agenda. The African Tech Startups Funding Report indicated that Last year was a record-breaking one for findings raised by Africa entrepreneurs. The African Business Angel Network (ABAN) is highly encouraged to inject more capital in the continent. Linkages creation is a key instrument when it comes to benchmarking and co-investment among startups.
According to the Lagos Angel Network (LAN) partner, Collins Onuegbu, sourcing enough investors remains to be the chief problem in the continent. Building enough capacity for effective investment is the best solution for small-scale startups especially setting up syndicates. He added that syndicates strategy aids in capacity expansion alongside efforts by LAN. Onuegbu emphasized that the institution has a secretariat which helps in linking up startups, building required structures.
Sean Obedih, NewGenAngels founder recommended another line of linkage between Africans in the Diaspora and African startups. She added that infrastructure to invest startups is better than money sends by African in the Diaspora for luxury living.
The senior partner of VC firm Energy Access Ventures, Ravi Sikand, angel investors and VC firms have significant roles in African Investment Space. He emphasized on the need of the two institutions to work hand in hand in order to improve the present condition in the continent. He noted that entrepreneurs have innovative ideas which require capital improvement and implementation. The involvement of VCs and angels will ensure valuation in the startups. Apart from value addition, the collaboration will enhance commitment and creation of suitable environment foreign investors. Sikand also explained that the relationship between VCs and angels is to ensure flexibility and coordination of the company.
