Nigerian entrepreneurs are actively seeking capital to grow their businesses, yet many are finding it increasingly challenging to secure the necessary funding. According to Temitope Runsewe, Managing Director of Sage Grey Finance, the issue often lies not in the quality of the business idea, but in whether the company is structured to attract investment. Over his two-decade career in finance, Runsewe has observed that the most successful businesses are those that can clearly demonstrate their investability to potential backers.
This evolving landscape is significant for the African startup ecosystem, as investors are now asking more rigorous questions about market size, customer demand, and the sustainability of business models. Runsewe emphasizes that a strong product is essential, but it is not sufficient on its own. Investors are increasingly focused on the complete commercial architecture of a business, which includes factors like distribution, management, and governance. This shift in focus could lead to a more robust investment climate, as startups that meet these criteria are likely to attract more substantial funding.
Looking ahead, startups in Nigeria and across Africa must adapt to these new expectations by institutionalizing their operations and demonstrating clear pathways to profitability. As the demand for higher standards continues to rise, entrepreneurs will need to refine their business models and strategies to align with investor priorities. This could ultimately lead to a more dynamic and sustainable startup ecosystem that benefits not only individual companies but also the broader economic landscape.