Startup funding is becoming increasingly difficult to come by, with a slowdown in funding due to high failure rates of previously funded startups, as well as a global recession that is affecting practically every country in the world. As a result, investors are taking deeper scrutiny before investing in any startup.
Serial startup investor, Iyin Aboyeji, has advised founders of viable and sustainable startups to focus on building their business rather than just presenting wonderful pitches to VCs. Aboyeji emphasized that startups should concentrate on actual productivity and the ability to be sustainable, which is more attractive to investors than mere ideas.
Bayen, an expert on African tech startup funding, believes that startups should focus on reaching their first major revenue milestone rather than rejoicing over having raised funding, as this is a more convincing indicator of a healthy business. Meanwhile, Growth Mentor revealed that many founders have no idea whether their startup is default alive or dead.
Aboyeji also advises startups in emerging markets to have a plan to build businesses with repeatable revenue margins before going out to raise funds. He believes that investors are paying better premiums for repeatable revenue and margins than they are for growth.
Finally, Aboyeji highlights that investors are more likely to invest in people they have relationships with and consider friends. He advises startups to retain a long-term relationship with investors instead of expecting quick answers.
In conclusion, founders of sustainable startups should focus on building their businesses and prioritizing repeatable revenue margins. They also need to know if their startup is default alive or dead. Furthermore, long-term relationships with investors are more valuable than a plain pitch to raise funding.
