As I pick up my pen once again, the memories of the startup boom from last year come flooding back. I remember monitoring multiple funding rounds within a couple of weeks, and it seemed like every other day there was another exciting startup success story to share. But now, it's like the startup scene has gone quiet, leaving Tage of Techcrunch itching to write about the latest and greatest startup raises that just aren't happening.
In a former article published sometime in late 2022(As We Proceed (Wrap-up 2022), I predicted that even with the US facing its issues, investors wouldn't give up on promising startups. But it's becoming increasingly clear that being a startup founder doesn't automatically make you a rock star. Building a successful business is the only way to weather this storm, yet it seems like a lot of startups are calling it quits. Some founders brag about failing, and others have a burn rate high enough to incinerate a 23-story building, but they aren't generating any revenue. They take to social media to lie to people and investors while they attend meaningless conferences and travel the world instead of focusing on building a solid business.
Expansion is another issue that has come to the forefront of Nigeria's startup ecosystem. Some startups claim to have expanded to the UK, Canada, and other countries that are lightyears ahead of Nigeria—with primitive solutions, no less. These startups are ignoring the real problems in Nigeria and Africa and chasing the dream of global expansion. But we must face these issues head-on and focus on building strong businesses in the present.
We may not be getting big checks from US investors anytime soon, but that doesn't mean we can't focus on building strong foundations for our startups. A unicorn is just a fantasy, but a cockroach business-style approach can help us weather the storm. Expansion isn't flex, and it's essential to focus on the home market first before venturing out. We need to fail, learn from our mistakes, and pass the test at home before we can venture abroad.
Nigeria and many other African countries face significant infrastructure challenges such as power outages, political instability, and corruption. These obstacles make it difficult to build successful businesses, but there is still hope. The recent Central Bank of Nigeria's cash policy is a prime example of hope. This policy required fintech companies to realize that they weren't penetrating the market enough and prompted many to pivot and iterate their products.
It's heartening to see startups responding to challenges and finding new ways to succeed. While we can't simply code or tech our way out of problems, we can use technology to enhance our solutions and address problems with a realistic approach. We must stay optimistic, embrace change, and work together to overcome the challenges we face and create a brighter future for ourselves and for generations to come.
So, let's put down our champagne glasses and focus on building strong, sustainable businesses that can weather the storms of economic and political uncertainty. Let's work to improve infrastructure and create an environment that supports entrepreneurship and innovation. Yes, it won't be easy, but nothing worth doing ever is. As I drop my pen back into the ink to reload, I'm confident that we will keep supporting the ecosystem moving forward, even if we have to do it one step at a time.
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