Common Mistakes When Seeking Angel Investment in Africa // A Special Focus on Kenya

Avoid These Common Mistakes When Seeking Angel Investment in Africa // A Special Focus on Kenya

By Réna Kakon, Co-founder of Kara Ventures

Hello, aspiring entrepreneurs of Kenya! If you’re reading this, you’re likely on a quest for that transformative angel investment in Africa. 

This year alone, we at Kara Ventures have interviewed over 73 Kenyan startups and had the privilege of investing in two exceptional ones—Workpay in HR Tech and Baki in Beauty Tech.

So, we have a nuanced understanding of what makes for a compelling pitch—and what doesn’t. Let’s get into it.

The Angel Investor Landscape in Africa

Unlike the crowded investment scene in places like Silicon Valley, the angel investment in Africa community is smaller but incredibly passionate.

These are individuals more interested in solving real-world problems than merely making a quick buck. But before you get to that stage, you need to catch their attention, and more importantly, their trust.

That’s where many Kenyan startups falter.

Common Mistakes to Avoid

Mistake #1: Intimidation and Insecurity

It’s natural to feel a bit intimidated when pitching your startup, but confidence is key. Investors are not just investing in a business; they’re investing in you. Show them why they should.

Mistake #2: Overhyping Your Numbers

Transparency is crucial. Inflating your numbers or making unrealistic projections will only harm your credibility.

Mistake #3: Lack of Research

Before approaching us or any other investor, do your homework. Know the investment focus and align your pitch accordingly.

Mistake #4: Poor Follow-Up

The pitch meeting isn’t the end; it’s just the beginning. A well-crafted follow-up can make all the difference in securing investment.

Building Relationships Before You Need Them

This is crucial. Networking within your co-working spaces, like Nairobi Garage, can sometimes lead you to someone who knows someone at Kara Ventures. Use that to your advantage.

The Power of Networking

We’ve listed over 200 angel investors actively investing in Africa in our Founders Toolkit. This isn’t just a list; it’s a treasure trove of potential champions for your startup. Use it wisely.

Conclusion

For Kenyan entrepreneurs, the journey to securing angel investment is challenging but not impossible. Believe in your vision, do your homework, and don’t be afraid to take that first step.

The road to success is paved with risks, but those who dare to walk it are the ones who leave a mark.

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NB: Réna Kakon is the co-founder of Kara Ventures, an investment firm that focuses on African startups. With investments across various sectors in Africa, including Kenya, she’s a champion for startups looking to make a real impact.