HOW TO FIND INVESTORS IN NIGERIA
HOW TO FIND INVESTORS IN NIGERIA
An investor could be a person or institution that has enough capital to take a position in several forms of businesses to realize financial returns. An investor can appraise an investing opportunity from diverse perspectives to avoid losing money, reduce risk, and increase profit potentials. There are different types of investors with different risk appetites. you’ve got those who invest within the short term and people that will invest within the long-term. However, you that require money to start out a business must find the correct variety of investor you wish to satisfy your dreams of launching that burning concept is fast gathering dust.
This article is about a way to find investors in Nigeria. In it, you may find out how to prove that there’s a requirement for your product and adopt a tested marketing plan, learn what investors want, and find out how to package your business idea to draw in investors. Other areas covered include, discovering different categories of investors, knowing where to search out investors in Nigeria, and if you discover investors in Nigeria tell them how you may use their money. Let start this tutorial.
Step 1: Prove that there’s a requirement for your product and adopt a tested marketing plan
Before you move out to pitch your business idea, test it with a true marketing plan of your potential competitors.
Test your idea
Testing your concept will provide you with the boldness to travel all dead set search for investors. Testing the viability of your product or service on your own will enable you to find and proper any weak areas if there are any. you may be ready to pitch your idea better. Prove there’s an enormous demand by polishing off research yourself and show the results. Provide complete statistics, economic data, and market demand, with popular articles on your industry, proving the market exists. Knowing there’s a marketplace for your idea will give confidence to potential investors you may meet. Also, if you’ve got a major social media presence and if an existing competitors’ business is functioning within the real market, these can be helpful to you to induce investors.
Adopt a successful marketing plan in your industry
Search for and adopt the simplest methods to check your idea, and this may prove that your marketing plan is an already tested method that works. you’ll copy your claims of a working marketing plan with data from competitors in the market. Use this method because you’re yet to launch the important product in the market. this system could convince an investor to back your idea.
Step 2. learn what investors want
Knowing what investors want is in our own way to enable you to search out investors in Nigeria. Below are more explanations on this theme.
Show your experience in the Industry
Showing your level of experience and proficiency in the industry you’re close to launch your small business is one in all the most effective ways to convey confidence to an investor. If you’ve got substantial years of operating therein sector, it’ll be a robust point that displays your strength to investors, helping them frame their minds faster about you. Investors are cautious and wouldn’t want to waste their money on a novice startup business idea.
Specific Funding Area
Investors have unique areas they prefer to fund and don’t invest all told varieties of business ideas. Some would want to take a position within the Agric sector, and another might need to take a position within the IT sector, Technology or Merchandising, etc. Discovering this unique trait about investors will help you to search out the kind of investors you wish.
What type does one Need
Find out the type of investors you would like and pitch your business idea to only these sets of investors. Your passion and expert knowledge of the business, and a sound grasp of the way to finance it, will help you to form the proper impression on potential investors in this specific industry.
Teamwork and an oversized Market
Ability to demonstrate to likely investors that you just add a team that’s able to solve an enormous problem for an outsized a part of the country or the globe could facilitate your win a possible investor. The larger the market, the more sellable your idea will appear to the investor, who is additionally thinking of a way to recover the investment with enough profit considering the danger of losing their money.
Step 3. learn the way to package your business idea to draw in investors
You must have a faultless pitch deck to back your concise business proposal to draw in investors to possess a review at your plan.
Having a budget could be a strategy on the way to find investors in Nigeria first.
The budget plan should illuminate of your budget and the way the business will run in 1 to 3 years. Show how the prices of running the corporate still reduce yearly while the profit keeps growing. Have an in depth marketing plan and operations plan, showing cashflow management and breakeven year, and the way that may translate to good returns on the investor’s stake on your business.
Have accurate financial information and marketing research to support your forecasts and show objective profit generation methods and state how this may fatten the investor’s account.
Having a rare concept you’ll be able to easily explain its potential to make wealth for the investor could enable you to convince them.
Show Your Unique Selling Proposition
An engaging exceptional selling advantage in the market over your competitors, which shows how your idea promises an early return on investment for the investor, could convince them.
Long term View
Paint a lovely picture of the business prospects in the future briefly to future view of three to 10 years.
Have a winning personality capable of negotiating fearlessly for what you wish and being willing to grant the maximum amount as you may get, is critical.
Selling and speaking Skills
You should have the vital skill to talk on your feet, persistency, and therefore the charisma to sell ice blocks to an Eskimo- to be ready to convince investors to take a position in your business concept.
Step 4: Discover different categories of investors
You may not remember of this as you think that about a way to find investors in Nigeria; there are many categories of investors. Learning about the categories will enable you to position yourself to urge an investor for your business idea. allow us to list and analyze them now.
1. Angel Investors
Angel investors are high net worth persons who explore for promising startup companies they’re going to invest in to administer them high returns. They work like risk capital investors but provide finance in small amounts for startup companies. They hope to gather stock or shares in an unknown company before it grows big. they’re usually the primary formal investors you get that provides you the working capital to start out your business.
2. Equity Investor
From the name, this can be self-explanatory, as equity investors will invest in your idea to urge a component of your business equity. They become part-owner, so you lose full control while their money is within the startup company.
3. Venture capitalist
Venture Capital investments only invest in startups that will give very high returns. They also help the corporate with their expert knowledge in business planning. For a VC to speculate in your business, your company must have shown that it’s producing good returns or capable of doing so continuously.
Step 5: Know where to search out investors in Nigeria
They are everywhere and around you. Some are expecting you to approach them while I write. With the web, you’ll reach the entire world. you’ll be able to use the facility of Social media and forums to succeed in bent on investors, among other strategies. allow us to see how below.
1. Angel investors Network
Using the net to look for Angel Investors network in Nigeria, is a method on the way to find investors in Nigeria. there’s one called Abuja Angel Network, but they are doing not own an internet site. They hold masterclasses which you will attend. In Lagos, you have got a pioneer Angel investor group in Africa, called Lagos, Angel Network. Visit their website and begin collaborating and interacting with members to induce the chance they provide. it’s a business angel network that began in 2014 and focused on mentoring beginner startups in Lagos. Angel network has invested in many startup ventures in Lagos.
2. Websites and Crowdfunding
Search the net for sites founded to link Investors to entrepreneurs with ideas who need funding. Quora, Twitter, and LinkedIn can be useful in reaching these prospective investors for your startup business idea. Build credibility first, so use caution to not be too aggressive else they’ll block your tweets and posts. See if Crowdfunding could work for you to fund technology startup businesses. But most Crowdfunding platforms are International and fund equity investing and loans and seed funds.
3. Seminars and Workshops
These are avenues where you meet every kind of individuals. you’ll encounter an investor during this forum. Even once you don’t see an Investor, you’ll meet interesting folks that will motivate you to stay your specialise in your goals.
4. Business schools or University
You could visit your former Alumni events and mingle with them. Also, your old school’s section would have high net worth individuals that are Investors. meet together with your former Head of Department. you’ll also head to Lagos grad school to satisfy with Top business executives and entrepreneurs. confer with the varsity authorities and acquire good advice and introduction to Investors.
5. Religious/Social organizations
If you belong to the identical social-religious organizations with high net worth individuals, you may pitch your business idea to them. as an example, if you recognize their business and you’re keen on their variety of business, your concept might be attractive to them and yield quicker results because both of you’ll understand yourselves.
6. Join Entrepreneurial Groups
You can join local tech and startup groups on Facebook and LinkedIn. head to events, assist an organizing committee, and interact with many of us as possible. Also, help the maximum amount as you’ll and build relationships. don’t just pitch all the time.
Get mentors in your industry that may offer you advice on what investors are trying to find and facilitate your leapfrog hidden traps to avoid making the mistakes they’d made. they’ll introduce you to top financiers in your industry.
8. Top platforms to search out investors in Nigeria to lift money
If you’re learning a way to find investors in Nigeria, here are top investors you’ll be able to meet, study their backgrounds, and approach them with what you’ve got read from this text. you’ll raise money by meeting these startup investors and plunger operating in Nigeria who is prepared to fund that your dream now.
LeadPath Nigeria: focuses on investing in the high growth technology sector to supply short, medium, and long-term capital to small and standard-sized startup companies in mobile technologies, software development, and web. They back companies solving physical problems through technology and invest a minimum of seed capital of between $25,000 to $100,000.00 and future additional funding running into lots of dollars.
GreenHouse Capital: Venture Garden Group launched GreenHouse Capital in 2016. They concentrate on building the foremost prominent Finance and Technology company in Africa. Green House capital invests directly in technology companies and therefore the banking sector. As of date, it’s invested in Rensource, Flutterwave, TalentBase, Max.NG and Riby.
Growth Capital Fund: Created by CChub, consists of investors like Bank of Industry, Venture Garden Group, CCHub, and Omidyar Network. Focuses on social funding that supports talented startup companies in the Technology space.
Ventures Platform : backs early-stage growth-oriented startups in Africa to bring your ideas to light. Founded by a keen angel investor, Mr. Kola Aina has helped startups like Jalo, MobileForms, Accounteer, Wesabi.com, GeroCare PiggyBank, and plenty of more.
SPARK Capital : invests in promising startups having scalable revenue models. Founded by IrokoTV‘s Jason Njoku, it’s invested in OgaVenue, Medsaf, Hotels NG, Drinks NG, Paystack, among others.
Step 6: If you discover investors in Nigeria
tell them how you may use their money
Selling your idea and getting an investor depends on what you may do with the money taking into consideration steps 1-5 above.
Having a carefully crafted business arrange to explain how your business works could win investors. Your business plan could be a fact sheet your investors can use to appraise whether to speculate or not.
Give Investors a snapshot of daily Business operations
Give detailed information about what you plan to try and do to stay the business in the top position. for instance, you’ll be able to show how you get supplies directly from manufacturers and therefore the distribution network to retailers. Simulate your daily operations on a typical day, to display how your marketing ideas preserves your business in the mind of your customers, in order that they keep buying from you.
Decide what to provide investors
For instance, a properly written plan shows how you’ll use the money if you get wise. But, don’t forget to create a provision within the business plan for the investor. you will either propose to relinquish them some equity or have definite ideas of how you’d repay the investment monthly or yearly. Also, show how profitable and safe their money is that if they trust you to multiply it for them.
This post taught you the way to search out investors in Nigeria by proving that there’s a requirement for your product and adopting a tested marketing plan, looking for what investors want, and learning a way to package your business idea to draw in investors. I also explained different categories of investors and where to seek out investors in Nigeria, and if you d7iscover investors in Nigeria, tell them how you may use their money. I hope this information helps you to search out an investor today to launch that startup business.
HOW TO FIND INVESTORS IN NIGERIA
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