News
Why We’re Attracted to Founders with Clear Direction for their Startup – Ifeoluwa Adepoju
Ifeoluwa Adepoju, a lawyer with over 6 years of legal experience. She is an LLM graduate of Business Law and currently heads the legal and compliance team at Future Africa. Ifeoluwa has worked with over 50 startups giving her current role in a VC firm and in her capacity in the tech ecosystem. In this interview with Ugo Onwuaso, she shares her experience assisting startups set up structures, scale and fund-raising processes. Excerpts:
Ifeoluwa Adepoju,
What actually led you to pick interest in startups?
I’ve always been drawn to startups because they’re like the underdogs with big dreams. Imagine this: a small group of people with a brilliant idea, working hard to turn it into something amazing. That kind of energy and determination is contagious.
Before I moved into the VC space, I have worked with many founders and their needs to get the right team, the right agreements, getting them ready to becoming investable, starts right from the formation of the company.
There’s this one startup I worked with early on. They had this revolutionary concept, and I got to be a part of their journey. We faced challenges together, including legal complexities, and celebrated victories.
Seeing them grow from a small idea to a successful venture was incredible, and it fueled my passion for helping startups thrive.
It’s like being part of a story where every small decision can make a huge impact. That’s why I love startups – they’re full of potential, surprises, and the thrill of making things happen.
A lot of startups struggle to raise funds. What do you think is responsible for this?
It is one thing to have a great idea; it is another to tell your story. The impact of storytelling is great when it comes to storytelling. One thing that makes each compelling story about how their product or service addresses a real market need is crucial in attracting investor interest.
Investors are not just looking at numbers; they want to be captivated by a story that resonates with the problem the startup aims to solve.
When startups can articulate their journey in a compelling way, it humanizes the business, making it relatable and memorable.
The power of storytelling lies in creating an emotional connection, helping investors understand not just what the startup does, but why it matters. a well-crafted narrative helps startups stand out in a crowded market. It differentiates them, making them more memorable amidst numerous pitches.
Successful fundraising often starts with a captivating story that leaves a lasting impression on potential investors, compelling them to be a part of the startup’s journey.
What are the things startup founders must bring to the table to convince VCs to make investment decisions?
Clear Vision and Mission: A well-defined vision and mission that communicates the startup’s purpose and long-term goals. VCs want to invest in founders who have a clear direction for their company.
Transparency and communication
Coachable founders and Capable Team: A skilled and dedicated team with relevant expertise. VCs invest not only in ideas but also in the people behind them and people who are teachable
Traction and Milestones: Demonstrable traction and achieved milestones, showcasing that the startup has made progress and has the potential for scalability. This could include user growth, revenue, partnerships, or product development milestones.
Market Understanding: In-depth knowledge of the target market, including a thorough understanding of competitors, potential challenges, and the overall industry. VCs want to see that founders have conducted comprehensive market research.
Effective Storytelling: The ability to tell a compelling story. Founders should be able to communicate their journey, challenges faced, and how they overcame them. Storytelling helps create an emotional connection with investors.
Scalability Plan:
There is ongoing debate as why VCs prefer to invest in a Deleware Corporation than an LLC. What is your take on that?
Registering a company in Delaware, whether as an LLC (Limited Liability Company) or a Corporation, is a popular choice for many businesses due to Delaware’s favourable business-friendly laws for startups.
LLCs are “pass-through entities,” meaning that profit (or loss) is passed through to the owners as income, and is taxable as such. VCs want no part of this as they are not investing solely to have any of the profits or losses of these businesses pass through to them.
Instead, VCs want to invest in C corporations, where the profit and loss are ascribed to the business and not the owners, allowing losses to be used to offset future revenues for tax purposes.
This does not mean that some VCs are not opened to taking on these risks and there are other options available to the VCs as well which I am writing on and should be published soon.
When is a startup due to have a board ?
It is never too early or late. What matters is having the right members who have the same goal and passion with you. You can wait till you become big and still not.
This year we have witnessed some startups shutting down business/operations. Some due to financial mismanagement, economic situations, lack of skills. But for you, do you think there are foundational challenges with startups, especially in Africa?
Beyond the personal mismanagement by founders, where fundraising is sometimes viewed as an opportunity for personal financial gain rather than contributing to the company’s overall objectives, I’ve identified additional critical factors.
One major concern is the regulatory environment, which often lacks the conducive conditions necessary for a thriving business in many African startup ecosystems.
Furthermore, the engagement of shareholders and venture capitalists (VCs) post-investment is crucial. The lack of follow-up by investors can pose a significant challenge.
This emphasizes the importance of a robust board that includes experienced mentors. With the right board members providing guidance and mentorship, startups stand a better chance of navigating challenges and achieving scalable growth.
Sapphire Technologies, energy recovery systems specialist has formed a strategic partnership with Horizon Shores Nigeria Ltd., marking its entry into the African market.
Sapphire Technologies said in a media release that the collaboration will enable the deployment of its FreeSpin In-Line Turboexpander technology, an energy recovery system designed to capture and convert otherwise wasted pressure energy into clean electricity.
Through the partnership, Sapphire Technologies said it aims to provide clean power solutions across Nigeria’s midstream and upstream sectors. The solutions will enable oil and gas operators to enhance energy efficiency, reduce carbon emissions, and improve economic outcomes, the company said.
“Our partnership with Horizon Shores is a milestone for Sapphire Technologies as we expand into one of Africa’s most dynamic energy markets”, said Freddie Sarhan, CEO of Sapphire Technologies.
“By leveraging our FreeSpin In-line Turboexpander technology, Nigeria could see significant gains in energy efficiency and economic resilience, reducing dependence on traditional power sources and fostering a greener future”.
Nigeria is a significant player in the global oil and gas market, with an estimated 37.5 billion barrels of crude oil and 209.26 trillion cubic feet of natural gas reserves, Sapphire Technologies noted.
The country’s oil and gas market is expected to reach a production capacity of 4.6 billion cubic feet per day in 2024, highlighting its potential for further growth, the company said.
This context underscores the importance of Sapphire Technologies’ partnership with Horizon Shores in bringing clean energy solutions to this dynamic market, it said.
“This partnership with Sapphire Technologies allows us to integrate state-of-the-art energy recovery systems, meeting Nigeria’s energy needs while supporting our commitment to environmental sustainability”, said Oluseun Olusola of Horizon Shores Nigeria Ltd.
“With Sapphire’s FreeSpin technology, we’re opening new pathways to decarbonize our industry while achieving long-term economic benefits”.
Sapphire Technologies and Horizon Shores plan to deploy over a dozen turboexpander projects in Nigeria over the next three years.
News
Jiji Honoured as Best in Retail Range Excellence, Unveils Mega Black Friday Discounts Across categories
Jiji, Africa’s online marketplace, has been awarded the prestigious title of “Best Retail Organization in Range Excellence” at the Africa Retail Awards 2024.
The event was hosted by the Africa Retail Academy and Lagos Business School – Pan Atlantic University in partnership with Nairametrics and KPMG.
This accolade highlights Jiji’s exceptional dedication to delivering a wide and diverse product range that meets the needs of millions of buyers and sellers across Nigeria.
The recognition comes as the organisation gears up for its biggest sales event of the year – Black Friday 2024. With the award highlighting the organisation’s vast product offerings, this year’s Black Friday campaign promises to be the most exciting yet for shoppers seeking unbeatable deals across various categories.
Statistics by the National Retail Federation predicts that holiday spending will grow 2.5-3.5% YoY this 2024, reaching around $985 billion, while online shopping is expected to increase 8-9% YoY by end 2024, reaching around $296 billion in sales.
What’s the deal this Black Friday?
To celebrate its win and further demonstrate commitment to Nigerian consumers, Jiji is launching a Black Friday campaign featuring jaw-dropping discounts of up to 85% across its product categories.
Starting from today until November 29, 2024, shoppers can take advantage of significant savings on everything listed on Jiji from smartphones and electronics to fashion, furniture, and beauty products.
“We’re honoured to receive the ‘Best Retail Organization in Range Excellence’ award. This recognition reflects our dedication to offering an expansive selection of products that cater to diverse consumer needs,” – Majolie Obaje, Regional head of PR & Marketing, Jiji
“As we kick off our Black Friday campaign, we’re excited to give our customers access to incredible deals across over 15 categories. We remain committed to promoting the power to bargain, affordability, and convenience for our 12m+ users on Jiji. Customers all over Nigeria are set to save big while they get more value for their money.” – Majolie Obaje, Regional head of PR & Marketing, Jiji
What should shoppers expect?
Jiji has teamed up with verified top sellers to bring exclusive offers, providing a wide range of discounted items across categories including popular ones like:
Phones & Tablets: Buyers can explore incredible prices on smartphones, tablets, laptops, and gaming consoles. Verified sellers are offering discounts of up to 85%, making it the perfect time to upgrade tech devices for less.
Fashion: Shoppers looking to revamp their wardrobes will find unbeatable deals on outfits, shoes, and accessories. Jiji’s fashion category offers everything from trendy streetwear to luxury items at fantastic discounts.
Home, Appliances & Furniture: Customers can elevate their living spaces with affordable furniture, home appliances, and air conditioners, all available at up to 85% off. It’s a prime opportunity for families to enhance their homes at pocket-friendly prices.
Health & Beauty: Luxurious fragrances, skincare products, and makeup essentials are all on sale, with significant markdowns that make it easy for beauty enthusiasts to grab their favourite items without breaking the bank.
Exclusive Black Friday shopping tips for buyers?
To ensure customers get the best out of this year’s Black Friday campaign, Jiji offers dedicated landing pages to their favourite items where they can easily discover the hottest deals. The company also advises shoppers to:
Search early and frequently: New deals are added regularly, so checking in often will help buyers get the most desired items.
Act fast: With limited-time offers and high demand, products may sell out quickly.
Prioritise safety: Jiji emphasises the importance of following its safety tips when completing transactions. The platform encourages buyers to meet with sellers in public places, inspect items to be sure they meet their request, and only pay if satisfied.
What’s the impact on Nigeria’s e-commerce industry?
Jiji’s unique approach to offering a broad product range at competitive prices and its meet-inspect-pay model have been instrumental in shaping Nigeria’s e-commerce space.
This Black Friday, the platform’s campaign not only reinforces its position as a market leader but also highlights the growing trend of online shopping among Nigerian consumers. Reports show consumers are increasingly concerned that in-store prices are not competitive with online prices, with 20% of consumers saying they’ll increase their online spend this 2024.
Jiji’s recognition by the Africa Retail Awards comes at a time when consumer expectations are evolving. There’s now a strong preference for platforms that provide variety, convenience, and value.
The organisation’s ongoing efforts to strengthen the platform, and its strategic collaborations with top sellers, reflect its adaptability to market trends and commitment to delivering a superior shopping experience.
Economic and Financial Crimes Commission (EFCC) has arrested Timber Kesiye Wabote, the former Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), over allegations of misappropriating $35 million in public funds linked to the failed Brass Project in Bayelsa State.
Wabote’s arrest follows the earlier detention of Akintoye Adeoye Akindele, the Managing Director of Atlantic International Refinery and Petrochemical Limited, who faces charges of money laundering, misappropriation, and diversion of funds.
The investigation centers around a project that was meant to develop an Energy Infrastructure Park in the Okpoama Community, Brass Local Government Area, Bayelsa State, including a refinery, jetty, gas plant, power plant, data center, and tank farm with the capacity to process 2,000 barrels of oil per day. NCDMB, under Wabote’s leadership, had reportedly provided counterpart funding of $35 million for the initiative.
However, the project was abandoned in December 2020 with minimal progress made despite the substantial funds allocated. Investigations revealed that Akindele was paid the $35 million by NCDMB to oversee the construction of the refinery and associated facilities. The funds were reportedly misappropriated, leaving little to show for the investment.
Preliminary findings suggest that Wabote, during his tenure as NCDMB Executive Secretary from 2016 to 2023, was involved in multiple such investments, including the Brass Free Trade Zone initiative. Wabote’s arrest is tied to the mismanagement of the $35 million intended for the refinery project.
The EFCC is currently holding Wabote at its Abuja facility, while investigations continue into the case, with other suspects also under scrutiny.
EFCC spokesman, Dele Oyewale, confirmed Wabote’s arrest on Wednesday but declined to provide additional comments on the matter.
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