Startups: The Race For Stardom
Emeka had stopped me on my way back from the hairdressers’ shop to ask for my number and as a typical Naija boy, he was dropping hot pick-up lines for me. There I was staring straight into his eyes and wondering if he overheard me “kabashing” to God the night before for a boyfriend.
But this rough-looking young man always debating why Tech is the new oil well was not exactly my prayer point because I can remember vividly that my wanting to chill with the big boys during my birthday party coming up later that year was what I emphasised when I was in the spirit.
I told him off almost immediately and walked away thinking I would probably have to restructure my prayers because maybe they were not being direct enough.
Two years after this encounter, I saw Emeka’s pictures plastered all over town and on tech blogs as the founder of one of the biggest Startups in Africa. The first thought that came to my mind was that this boy finally dug this tech oil well he was rambling about and I regretted why I had brushed him off.
Come to think of it, his shirts then were not that rough and his accent was even sweet that day he was wooing me. I immediately made up my mind to research more on this oil well, and maybe I will be able to dig mine.
Now we have read up till this point, why don’t we explain what Startups are to our first-time readers, and don’t worry, we won’t bore you with big grammar, or at least not too much.
Startups refer to a company founded by one or two entrepreneurs who want to use innovative ventures; products or services to solve problems or demand and are in the early stages of operations.
Most Startups are often charged with disrupting existing traditional ways of thinking and doing business which is why most times when you search their “about us” or description, ‘Disruptors’ are always staring hard into your face. Get it now?
Since this is out of the way let’s get into proper details.
As we have witnessed, ideas have gone past the phase of being just words and these days, startups are springing up much faster than ever, both globally and especially in Africa. Every day I hear news of another Tech Startup and I don’t know about you but the constant update makes me wonder if it is that easy to start a tech company.
While the stories accompanying startups differ, one thing remains constant: the endless struggle and race for stardom. It is one thing to conceive an idea envisioned to be the next big thing, and it is another to successfully execute it.
Dreams and goals are all nice and exciting on paper, but they may never come to fruition if you don’t get them right. Here is one thing to learn from Emeka, he spoke about his tech dream; one to visualize it and another to keep him accountable for this dream, as those listening would sooner or later ask him about his next steps.
We only heard of the grass to grace part of Emeka’s story and none of his toils and efforts was part of the billboard. Maybe the advertiser would know better but I neither had his/her number to call while I was still brooding about my loss.
But the reality is that the Startup market is like a marathon race of winner-take-all where pace and perseverance are paramount.
This is me giving you a heads-up that it is not all glitter and interviews, sustainability is tough [Don’t say I didn’t do anything for you today].
Founders should think about what they know, what they don’t know, and what new unknowns might emerge in the future. The quality of a startup’s personnel, as well as its growth, marketing, and business tactics, have a significant impact on the actualisation of its set objectives.
When you ask most founders how they plan to achieve their goals before they launch, you’ll get comments like “We’re going to start on personalization, and I’m thinking, “What are you going to personalise?” What’s more, why are you doing it? What exactly is the problem you’re trying to solve?’
Attaining stardom is difficult for startups due to some structural hurdles such as low consumer purchasing power, complex and inconsistent legislation, poor data analysis infrastructure, a scarcity of capital and digital skillsets etc. While some might think they have this in the bag, founders are often faced with the harsh reality of a competitive landscape.
Alright, let’s drop how they make funds for our not so patient readers. I said I’ve got you and your time covered right.
Back to Emeka’s story, you would remember I was reminded of him only because I saw his face plastered all around town, why, because he went public. After conceptualization, onboarding and identification of strategies, startups go public to open their brand awareness, visibility, public investment and opportunities to get funding.
Startups generally raise funds from various channels aside from the initial bootstrapping when friends, founders and family members invest in their business.
While there are a minimal number of fortunate companies that work efficiently based on funding from within their circle, a larger majority leverage other channels to raise capital.
An example is the usual breaking news on mouthwatering seedfunds for major brands. This external sourcing for capital provides investors and outsiders with the opportunity to invest cash either for equity, shares or partial ownership of the company. This category encompasses Series A, Series B, Series C and D funding primarily led by venture capital firms, which invest tens to hundreds of millions into companies.
Many startups will ultimately fail if they don’t gear up to face hurdles, not all do. For a startup to succeed, crucial questions must be answered. I am sure Emeka solved those questions, which is why his name was all over the news.
When I finally get his contact to reach out and maybe ignite the fire, I will do well to bring up conversations about how he did it.
Moving forward, Tech Steroid will be dropping regular updates and secrets to help navigate all through the Tech space.
