Startup Ways of Building Viable Economy Through Startup Funds

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Photo By: DaGreatDan

Bayo Adeoshun


It has become very expedient to engage and support startups as big economies consistently harness the potential of their talents and skills by creating many enabling environments for startups, thereby rewarding these economies with great economic prosperity. This is evident in the number of employment opportunities created by startups to help young professionals garner experience, also, the completion of innovation injected into these nations.


 

An independent research revealed many brilliant individuals, teams and talents, especially the youths are hoping for a turnaround and better days to come where their thought-of innovation can become a reality.

Lagos is considered to be the land of opportunity for Nigerians, Africans and the world and rightly so, one of the best business cities in the world.

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The challenges encountered by startups are enormous, especially during the formation stage. Access to seed fund, business information, and mentorship proves an uphill task. When faced with these challenges, rather than attempt to start a business, many youths seek solace in the question, “what is the point?” then shift focus to job employment.

Source: pandle.com

Since the economies of the states and Nigeria as a whole will be rewarded with the prosperity of start-ups, much has to be done to encourage startups and its growth, at both state and federal levels.

Nigeria has what it takes to export innovation with its vast talented youths however, a lack of collaboration between the government and private investors constitute a myopia of business insight and risk-aversion invariably hindering startups from its launch.

Seed fund, which is the basis and energy for startups is almost non-existent or rather, difficult to access for new business entrants. While seed funding is seen in other nations as a way to grow new business ideas, its success is showcased in the Western world where appetite for investment is huge; that is why many businesses and innovations emerge at every turn.

The Nigerian government has a major role to play in encouraging startup businesses because a lot can be achieved through grants and seed funding for quick transformation and growth. Similarly, lessons can be learnt from the Singaporean community that encourage startups’ growth and expansion through seed funding and mentorship. The Incubator Reality will engage and invest in startups, from concept to seed stage, launch and growth.

According to PitchBook, a private market data company, there were 382,000 business births in the UK in 2017, which equates to a 13% birthrate with seed from crowdfunding, venture capitals and peer-to-peer lending.

An overview of venture capital deals in the UK in 2017 based on the gender of the founding team shows that less than 1% went to female-only teams, 10% went to teams with mixed genders and 89% went to male-only teams. In comparison with the UK, the Toronto community in Canada had an estimate of 2,100 to 2,700 startups operating as of 2017.

As at 2020, VC funding in Africa dropped by 40% with both early stage and pre-stage funding suffering as a result of COVID-19. However, before the emergence of COVID-19, the Small Business Administration (SBA) posits that one in three small businesses in Nigeria fold up within 18 months of establishment. As if that’s not enough, data for the last decade show that Nigeria has a failure rate of 61% for startups. These failure stems from inadequate access to seed funds or loans from financial institution, mismanagement of seed funds where available and poor business resource and mentorship.

If there has to be a change or transformation in the creative industry and startup as a whole, the government must create, from local to federal, funds as grants and seed funding for startups. This will go a long way in changing the narrative with much insight to the challenges.

If there has to be a change or transformation in the creative industry and startup as a whole, the government must create funds available to the public, from local to federal such as grants and seed funding for startups. This will go a long way in changing the narrative with much insight to the challenges.

Taking a closer look at some of the critical issues or challenges encountered by startups, the founders are advised to draw more from the questions below to get them prepared for questions asked by investors.

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      • Why would an investor be interested in your business?
      • Are you in the business because it sounds good or because it’s commercially viable?
      • The next question would be how much information do you have about the business you want to start? Is it just what you learned in school or the information you picked from different portals?
      • Is the business designed to meet a need or close a gap?
      • Why would you take the business risk – leaning on your knowledge and strength alone?
      • Is the business positioned for exponential growth?
      • Are you ready for the pitch?

If you’ve thought through the above questions and you can resonate with them then you are closer to the realization of your thought than you think.

It has become very expedient to engage and support startups as big economies consistently harness the potential of their talents and skills by creating many enabling environments for startups, thereby rewarding these economies with great economic prosperity. This is evident in the number of employment opportunities created by startups to help young professionals garner experience, also, the completion of innovation injected into these nations.

Startups have the power to transform cities where they operate by attracting migration of skills from other countries, as well as improving the economy with innovation.

ECSCORP took stock and insight through many of these challenges to create The Incubator Reality just in time to engage the best Nigerian brains locally and in its diaspora.

The Incubator will offer what they don’t teach you in business schools; a platform that mirrors concept to success. You will be incubated for a period of 12 weeks and graduate with honors, not searching for jobs rather, employing people to work with you. Isn’t that amazing?

The objective is to address the most crucial startups’ challenges, leveraging on partnerships among others that leapfrog to transformation.

The Incubator Reality will showcase strength of partnerships, competition of innovation and its viability, cutting time to market and the influence of businesses mentorship. Contestants will be able to showcase their brand and attract attention to their talent. Also, they will have achieved business success before they graduate from the Incubator.

To be eligible to partake in the noble Incubator Reality, you must be between the ages of 25 and 40 years and be able to think beyond borders. You must have: the right attitude for success, an entrepreneurial drive with originality, excellent communication skills (both oral and written), be a good team player, have sales and marketing skills, as well as good leadership and influencing skills. If you fit this description, then watch out as the Incubator’s Host will be coming to your city very soon.

The Incubator’s Host, very assertive and thorough, will leave no stone unturned to optimize productivity while incubating 25 brilliant minds drawn from across the length and breadth of Nigeria and its diaspora. The contestants will go through a rigorous audition to prove their competence and eligibility for selection by the judges. These individuals will work closely together to help cut time to market, monitor progress early enough to ascertain trend and exchange ideas to optimize delivery that churns out quality results.

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Furthermore, the Incubator will hatch two (2) teams; the winner and the first runner-up graduating with seed fund of $1M and $700,000 respectively to start their company.

Why is the Incubator exciting? Every contestant is a winner; this is one of the many benefits for contesting.e viewers will be inspired, the partner brand gets maximum exposure with a projected 40 million views, and Nigeria benefits from a growth in GDP and direct investment to business growth.

Watch out for the transformative Incubator Reality!

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