Digital nomads, the modern-day pioneers seeking global opportunities in the ever-evolving tech world. Meet Victor Daniyan, a determined founder sweating under the Moroccan heat as he pitches his brainchild, Nearpays, to a room full of seasoned entrepreneurs and investors. The pressure is palpable as he awaits their verdict—a moment that could shape the future of his startup.
“These were men who could take any inexperienced founder from zero to everything.”
Victor’s journey embodies the struggles and aspirations of first-time founders in Africa. Building a contactless payment solution like Nearpays requires not just vision but also substantial financial backing—an uphill battle for many novice entrepreneurs. After two years of self-funding, Victor finally sees traction but faces a new challenge at Plug and Play’s investor event due to a visa delay.
“One of many stories about systemic travel bottlenecks that plague African founders…”
The issue extends beyond funding; it’s about trust too. Uzochukwu Mbamalu shares his firsthand experience where mentioning Nigeria abruptly ends conversations with potential investors. For early-stage founders like him, geography plays a crucial role in gaining trust and access to funding opportunities.
“Trust level increases when people from Nigeria travel out—they tend to raise money at that point.”
Navigating these hurdles often leads founders to seek investment abroad, bringing forth its own set of challenges. Many African startups register in Delaware to attract international investors despite primarily serving local markets. This approach aims to create a global perception for better funding prospects but can strain resources and divert focus from core operations.
“We had to create a Delaware LLC…I pay US taxes even though we’re serving an African market.”
While foreign investments offer invaluable support and connections, they also come with structural demands that may not align with local market dynamics. The tug-of-war between global scalability and staying rooted in regional contexts poses strategic dilemmas for startups like Nearpays and Palremit.
“In all our public releases…we say we are building for the ‘Global South’ instead of just Africa.”
Beyond financial considerations, founders are physically uprooting themselves in search of greener pastures—relocating to regions that offer better networking opportunities and investor relations. For Mbamalu and Daniyan, strategic moves have opened doors to investments while expanding their startups’ horizons across borders.
“You can’t build effectively for a region you’ve never seen…”
As more African entrepreneurs embark on this global quest for funding and growth, striking a balance between international expansion and nurturing local roots becomes paramount. While foreign investments inject much-needed capital into burgeoning startups, there’s an underlying concern about preserving indigenous markets amidst rapid globalization trends.
The digital nomad narrative continues as founders pack their bags, chase visas, pitch ideas tirelessly—all in pursuit of that one breakthrough moment when belief turns into investment reality.
