Expert Harps on Initial Fund Raising, Management among Startups
Emma Okonji
The Chief Operating Officer (COO) of Kora, a financial technology company, Mr. Ayodeji Osisami has stressed the need for technology startups to effectively manage their initial funds in order to remain competitive in business.
Osisami, who spoke at the GenZ Techies conference held at the University of Lagos at the weekend, said the raising and management of initial capital for technology startups had always been a herculean task, especially for the younger generation known as GenZs who are beginners in the startups space.
He encouraged the GenZs to begin their journey with their personal fund or raise money from family members and friends.
The GenZ Techies platform is a community of young tech developers, founders, designers, and technicians across Africa that connect, learn and discover life changing opportunities.
Speaking on the theme: ‘Getting and Managing Your First Fundraise,’ Osisami said: “There are three ways to raise funds. The first is a personal fund. Try and start a profitable business, then you can work and save some money and not to start your journey in debt.
“The second is about using family and friends to raise funds. Those are the timeless ways of doing this while the third way of course, is incubators, joining the likes of Techstars, Ycombinators among others.”
He also advised them on ways to manage their first funds when it eventually comes. Osisami urged them to stick to the purpose of the business, maintain discipline and also constitute their boards on time.
He said: “The first thing is that you must stick to the business purpose. You cannot forget about profitability, cash flow. Nowadays, with all the funky things, people get carried away with the millions they raised, so you need to stick to those tiny principles that guide your business.
“Again, discipline is key. To be able to stick to those principles, it takes discipline. You need to stick to the course, ensure that you are profitable, don’t just grow your over head like that.
“The third is that you must be accountable to somebody. Get your board on time, a senior colleague that you are reporting to because once you don’t have accountability, there is a tendency to run down the business.”
According to him, people are tempted to lavish the first one million dollars that they make in the business, by buying a car and exotic things that they don’t really need and at the end of the day, they go back to square one.
