27: What To Look For When Investing in Tech Startups in Africa

In this episode, the host discusses what to look for when making an investment decision in tech startups. The key factors to consider include the founders and team, their prior experience, traction, product evaluation, market readiness, target customer definition, and revenue and growth expectations.

Takeaways

- The team and founders are crucial to the success of a startup. Look for founders with prior experience and learn from their failures.

- Traction is an important factor to consider before investing. Look for evidence of customer acquisition and revenue generation.

- Evaluate the product and its ability to solve a problem. Focus on the minimum viable product and customer feedback.

- Assess the market and determine if it is ready for the product. Define the target customer and understand their needs and preferences.

- Consider revenue and growth expectations. Aim for significant annual revenue and demonstrate a clear path to scalability.

Chapters

00:00 Importance of Founders and Team

03:12 Prioritizing Founder Experience

06:37 Importance of Traction

08:05 Evaluation of Product

10:59 Assessing the Market

14:16 Defining the Target Customer

15:41 Revenue and Growth Expectations

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