The most common way for African startups to get seed funding is through investment from venture capitalists. However, there are a few other ways to get seed funding, such as through government grants, crowdfunding, or personal savings.
Venture capitalists are typically interested in high-growth startups, so if your startup has potential for high growth, pitching to VCs is a good option. African startups can also look for VCs that specifically focus on investing in Africa. For a list of VCs that invest in Africa, see this list: https://blog.covention.io/top-20-venture-capitalists-in-africa-cc74cd874a92.
Government grants can be a good option for African startups that are working on projects that align with the government’s priorities. For example, in South Africa, the Department of Trade and Industry offers grants for startups that are working on innovative projects that will create jobs and contribute to the country’s economic growth. To learn more about government grants for startups in South Africa, see this link: https://www2.deloitte.com/content/dam/Deloitte/za/Documents/technology-media-telecommunications/za-tmt-2019-tech-startups-survival-guide-final.pdf.
Crowdfunding is another option for African startups to raise seed funding. Platforms like Kickstarter and Indiegogo allow startups to pitch their project or product to a large number of people and receive funding from backers if they reach their fundraising goal. For more information on crowdfunding, see this link: https://www.entrepreneur.com/article/292779.
Finally, personal savings can also be used to finance a startup. This is typically not an option for African startups, as most people in Africa do not have enough savings to self-fund a startup. However, if you do have personal savings, you can use them to finance your startup.
