Alumide soyombo is one Nigerian tech startups and largely well-known active angel investors in Africa. Since launching Angel Investments in 2014, Soyombo has invested in 33 startups, including Stripe-owned Paststick, Pigwest and TeamUpt.
Today, the investor is announcing the launch Waltron Capital, A pan-African venture capital company He co-founded with US-based entrepreneur and investor Abe Choi.
Waltron will deploy capital for about 30 startups, Mostly “To overcome the serious lack of access to early-stage funding for African tech companies”, in order to pre-seed and seed-stage across Africa. Ticket sizes will range from $ 20,000 to ,000 100,000, focusing on startups in Nigeria, Kenya, South Africa and North Africa.
Soyombo is one of the few founder-cum-investors of the continent, although his company is not a traditional VC-backed startup, but has become accustomed to the world. In 2008, he started Bluechip Technologies with a friend, Kazim Tevogbade, who provides data warehousing solutions and enterprise applications to banks, telcos, insurance companies. Some of its larger customers include OEMs like Oracle.
Angel Investor’s non-traditional startup founder
Six years later, the pair decided to venture into tech, adventure In proportion Newborn industry in Nigeria at that time And started investing early on by the lead athlete, they are an early stage pay firm, which they started in Lagos, Nigeria. The idea was to invest $ 25,000 and startups for three months Accelerator program ending in demo day. The plan was to run the leadpath like a Y combinator, but it didn’t take off as planned.
“In 2001, we found out that after three months, there was no investor to put them forward. So you have to write another check yourself, “Soyombo said funny on the phone.”We Soon Seeing that the acceleration model didn’t work, we started investing Personally. It’s funny how things have changed since then. “
The lead became a special purpose vehicle (SPV) for the pair to carry out their angel investment deals.. And over the years, Soyombo has launched several SPVs for the same purpose. So why do things Differently Creating a fund now? Soyombo goes through a process that has been used to fund the deal for years to answer this question for me.
As an influential figure in Nigeria’s tech ecosystem, Soyombo has access to almost any important deal in the market.. “I have the privilege of seeing a lot of deals before most people see them. I built it within the network startup ecosystem and is always ready to help as an assistant angel. So Apparently, Which helped me to see many deals Soon, ”He said. Often, the deal flows Filled with The six-figure is in search of pre-seed for early seed-investment. Say, for example, a founder thinking of raising $ 300,000, Soyombo could Especially Invest 50,000 of his own money. And based on his assumptions of the startup’s growth potential, he may choose to bring his friends and acquaintances on board to fill the round.
This informal approach is what Soymbo seeks to create a formal formality through a structured structure where each individual or organizational LP enters its trade stream simultaneously. Investors believe that this way companies will get capital quickly. And interestingly, their work in corporate corporate Nigeria has allowed them access to non-traditional capital access, which means that some of the investors who use Soyombo’s transaction flow are outside the typical Nigerian tech investment landscape.
He sees his job as bridging the investment gap between his corporate friends and colleagues who don’t have one. Especially Have invested in tech and startups that need their money.
“There’s a little FOMO now,” he said. “People, including net worth net worth individuals, tell me that I will accompany them whenever I invest, and then I also have startups in search of capital. But after that, I’m not trying to get the perfect job by managing the entire fund, which is why we structured it this way. “
Anyone familiar with the events that have taken place in African Tech over the past few months is aware of the two events that have led to this FOMO paste coming out in a striped and unicorn state of flutterwave.. Soyombo was an early investor in the former, marking the primary exit alone with two secondary in a portfolio in which ula increased by more than 70 million. Thus, it is not difficult to see why Soyombo does not take a difficult time to explain to non-traditional investors HNI (Who is it Infamous Risk-resistance when it comes to technical investment), write checks in startups.
“All Suddenly, everyone Is interested What happens in space. HNIs throwing money into real estate Looking for startups. We also see Old HNI Ask their kids to invest on their behalf, so it’s easier to communicate. Most of them want to diversify their portfolio by getting a piece of pine, ”he said, pointing to the success of Pastack and Flitterwave..
Waltron wants capital Managed On Angelist. Its investors have invested in HNI. And banks, among other sectors, have made cuts from telcos executives Minimum Is 10,000. Voltron is similar to the seven-digit fund targeting pre-seed and seed-stage startups in Africa. ‘It is quite different from the way the founders choose the back. The fund is the embodiment of Soyombo’s investment stance, which is “the first founder regardless of the industry.”
“I continue to support interesting entrepreneurs. If Pigwest’s Odunayo was building a healthtech or an adtech company, I would give it back to that company, “he said, referring to the 1 1 million investment made three years ago from the widely celebrated Fintex in Nigeria. “So I believe The investability of the sectors for me, Powered by Quality entrepreneurs who are going to solve problems in that field”
Early stage investments require more work
In 2019, African tech startups raised a record $ 2 billion, according to Partech Africa. They have already halved that number this year, and some publications have predicted that these startups will break the 2019 record..
The bulk of these investments Goes into late-stage deals, characteristic of most tech ecosystems globally. But Africa stands out because early-stage startups find it more difficult to raise investments than other regions. For example, the IFC reports that African૨% African tech startups face major problems with access to seed funds and a shortage of angel investors.. Without start-up funding, many startups designed to drive this growth are losing significant capital to support their initial operations and generate revenue, which is a key Need Afterwards to secure rounds of funding and large-scale.
Waltron, in his low capacity, wants to fill this gap in the best way he can. In addition to listing local investors as LPs, Soyombo says startups will also be able to access foreign capital. Choi is the key to becoming. Individually, Choi has invested in 15 startups (two are exiting); Therefore, the U.S. Their experience in and network will be crucial to gaining foreign capital in the continent.
Soyombo believes that foreign investors have taken note of African startups due to the acquisition of Pestackana. Oops Funny The reference to Paul Graham’s tweet after the acquisition is also a reason for the interests of foreign investors. A tweet from Y Combinator co-founder read: “Investors ignoring Nigeria now have to ask themselves: What do I know Patrick Collison doesn’t do?”
Investors say the pace at which the African tech ecosystem is maturing stimulates anyone, he said.. This The quality of the founders on the continent is improving and will continue to be that way as more problems are solved there, he added.
“Also, as our startups mature, we will see people going to start them. We want the next wave of African technological success stories to not only impact the continent but Really Global; Through Abe’s strategic alliances with the USA, we are confident that we can provide the best prospects to our portfolio to achieve this through our US and global network. “