How to raise funds for your Tech startup

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Before you start thinking about how to raise funds for your tech startup, you need to ask yourself certain questions:

Are you are venturing into tech because you have a passion for it or because it is trendy and all your friends are into it? Are you running a tech startup because you want to solve some problems with technology or because you want to be addressed as a Ceo and get photo-ops at events? Are you an innovative person that come up with innovative solutions like the Jason Njokus, the Mark Essien, the Mitchel Elegbes and the Stanley Ekehs of this world?

One major challenge you are going to face on your tech entrepreneurial journey is that of funding. Your dreams and vision will hit a brick wall if you don’t find a way to raise funds to invest in your tech startup. You may have the potential to be the next Mark Zuckerberg with the hottest app but without money to acquire the necessary tools, gadgets, personnel, office space, assets, etc, you might end up as a bouncer in a seedy club in Ajegunle exchanging blows with area boys.

When starting out, you may spend most of your time with your head in the clouds, dreaming of angel investors, venture capitalists and ‘big boys’ willing to pour in funds into your idea without making outrageous demands and placing conditions. With the seed funds from them, you feel you can be the next Paystack, PiggyBankNG, Migo, Farmcrowdy, Flutterwave INC., LifeBank, CowryWise, etc, but when you snap out of your idealist bubble and face reality, you will realize that you are stuck in front of your weatherbeaten laptop in your room without a social life, coding, surviving on snacks and barely making enough to get by, having nothing to hold on to except a brilliant idea and not knowing how to raise funds for your tech startup. It is the belief and passion in that idea that will motivate you to keep on pushing. It is the passion that will propel you to take certain steps, make some moves, go into collaborations and partnerships, reach out to prospective investors, share and sell your idea, and raise the much-needed funds.

Running a tech startup is not child’s play, it takes guts and determination to pull through. The road is not linear and is full of twists and turns. One day you can be at the bottom of the world, broke to the last kobo, friends, and family mocking and pitying you, having nothing else in the world than the shirt on your back, the next day you can be on top of the world, smiling on the cover of Forbes magazine with your networth in millions of dollars, granting interviews to CNN, rocking in your swivel chair in your international headquarters because your brilliant startup idea has hit global success.

To raise cash to fund your tech startup:

1. Save money, then invest the money in the startup.

2. Take a loan from financial institutions with low interest.

3. Crowdfunding. Get your friends, family members and followers to support your idea by donating to you.

4. Partner with an existing and successful tech company.

5. Lookout and apply for business grants from government agencies, non-governmental organizations and international organizations.

6. Pitch your ideas to Angel investors and Venture capitalists.

We wish you success in 2021.

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