How Africa can develop ecosystems to groom future unicorns

With Flutterwave achieving unicorn status in just over 5 years, the spotlight is now on Nigeria's tech ecosystem and its ability to foster similar success stories. Niyi Yusuf, Managing Partner at Verraki Africa, believes that the key to replicating this level of success lies in the entrepreneurial spirit of Nigerian youth who possess a global vision while being rooted in their home country. Yusuf points out that companies like Flutterwave, which are registered and incorporated in multiple countries, have the advantage of accessing global standards, investors, and mentors. By focusing on solving wide-reaching problems that extend beyond Nigeria's borders, these startups can attract significant investment and scale to become unicorns. He anticipates that more Nigerian startups will follow in the footsteps of paystack and Flutterwave, paving the way for a new wave of success stories. However, one critical factor that could determine the success of startups in Nigeria is talent. Yusuf acknowledges that talent is a concern in a developing country like Nigeria, where issues such as infrastructure and healthcare also pose challenges. Despite these hurdles, he is optimistic about the talent pipeline in Nigeria, with over 300 degree-awarding institutions producing around 600,000 graduates annually. Many of these graduates are tech-savvy and entrepreneurial, providing a solid foundation for startups looking to thrive in the ecosystem. For aspiring startups seeking to raise funds, Yusuf offers valuable advice. He emphasizes the importance of setting up a company with clean books and standardized processes that adhere to global standards. Startups should focus on solving a pressing problem that customers are willing to pay for, ensuring that their solution has a market fit. By testing their solution in a small sector before scaling up, startups can demonstrate credibility to potential investors. Yusuf also highlights the significance of starting with self-funding and gaining trust from family and friends before approaching external investors, venture capital firms, and angel investors. By showcasing early results and progress, startups can attract the capital needed to fuel their growth and expansion. The journey to securing funding involves climbing a series of steps, from personal investments to institutional funding, showcasing resilience and potential along the way. In conclusion, Nigeria's tech ecosystem holds great promise for nurturing future unicorn startups, with a new generation of entrepreneurial talent and innovative solutions poised for success. By leveraging global resources, maintaining high standards, and demonstrating market fit, startups in Nigeria can aspire to reach unicorn status and make a significant impact on the continent's tech landscape.