TechPression

Tag: tech start-up

  • Apply for Lagos Innovates free Workspace Voucher to boost your tech startup journey 

    Apply for Lagos Innovates free Workspace Voucher to boost your tech startup journey 

    Early-stage tech startups in Lagos have a unique opportunity to accelerate their growth through the Lagos Innovates Workspace Voucher programme, which is now open for applications.

    This initiative is designed to support promising startups by providing access to state-of-the-art workspaces at significantly reduced costs, enabling founders to focus on innovation and business development without the burden of high rental expenses.

    Read also: Lagos State Government launches LAG-UP to empower youths with tech skills

    State-of-the-art Workspaces for Early-Stage Startups

    The Workspace Voucher Programme offers eligible startups discounts of 30% to 75% on membership costs at any of Lagos Innovates’ Partner Hubs for 3 to 12 months. This initiative targets startups in the ideation phase or those with very early revenue, providing them a conducive environment to grow and thrive.

    The program allows startups to access top-notch facilities and equipment, collaborative workspaces that foster innovation, and valuable networking opportunities within Lagos’ vibrant startup ecosystem. These benefits are tailored to ensure that founders can focus on building their ventures without the financial strain often accompanying early-stage entrepreneurship.

    Competitive and Merit-Based Allocation

    The application process is competitive and merit-based, ensuring that the vouchers are awarded to the most promising startups. Eligible ventures are those that have not yet been incorporated or have been incorporated for less than a year, have a small team of co-founders without paid staff, and generate less than one million naira in monthly revenue. Additionally, startups without third-party capital, such as grants or equity, are encouraged to apply.

    Startups that meet these criteria and are ready to take their ventures to the next level are urged to apply for this transformative opportunity. The Workspace Voucher Programme reduces the cost of accessing high-quality infrastructure and positions startups to scale their businesses effectively.

    The Lagos Innovates Workspace Voucher Programme is an exceptional opportunity for early-stage startups to secure a foothold in Lagos’ burgeoning tech ecosystem. This initiative empowers tech founders to concentrate on what truly matters—building successful, innovative businesses by alleviating the costs associated with workspace rentals.

    Read also: Tekedia Capital invests in Edtech startup Quizac, revitalizing its gamified learning platform

    Applications are currently open, and interested startups are encouraged to apply to secure their place in one of Lagos Innovates’ Partner Hubs. Visit lagosinnovates.grantplatform.com to apply and learn more about how the Workspace Voucher Programme can support your startup journey.

    About Lagos Innovates

    Lagos Innovates is an initiative by the Lagos State Employment Trust Fund (LSETF) designed to support the growth of the state’s technology ecosystem. It provides tech enthusiasts, founders, and startups with access to essential resources and support.

    Through various tech-focused programs, Lagos Innovates aims to foster innovation, strengthen the tech talent and funding pipeline, and position Lagos as a leading startup hub in Africa. It is the first in sub-Saharan Africa, with a long-term goal of driving tech-driven entrepreneurship.

  • How to prevent tech startup failure in Nigeria in 2024

    How to prevent tech startup failure in Nigeria in 2024

    Nigeria is a country with immense potential for innovation and entrepreneurship, especially in the technology sector. However, the reality is that many tech startups in Nigeria fail to survive and scale up, despite raising millions of dollars from investors.

    In 2023 alone, nine Nigerian startups that collectively raised over $70 million in the last two years shut down, leaving behind disappointed customers, employees, and shareholders. What are the reasons for these failures, and what can be done to prevent them in the future?

    Read also: African startups turn to debt funding as equity drops

    The Reasons for Startup Failure in Nigeria

    There is no single cause for startup failure, as each case is unique and depends on various factors. However, some common themes can be identified from the experiences of the startups that shut down in 2023. These include:

    Lack of market fit: Some startups failed to identify and address a real problem that customers were willing to pay for. For example, Pillow, a platform that connected travelers with local hosts, shut down after realizing that there was not enough demand for its service in Nigeria. Similarly, Vibra, a music streaming app, closed down after failing to compete with established players like Spotify and Apple Music.

    Poor execution: Some startups had a good idea, but failed to execute it well. For example, 54Gene, a genomics company that aimed to build the largest African DNA database, shut down after facing regulatory and ethical challenges, as well as allegations of data misuse and mismanagement. Likewise, PayDay, a payroll and HR software, shut down after experiencing technical glitches, customer complaints, and legal disputes.

    Running out of cash: Some startups ran out of money before they could achieve profitability or raise more funding. For example, Lazerpay, a web3 crypto payments company, shut down after being unable to close a successful fundraising round. Similarly, Hytch, a logistics startup, shut down because it could not sustain the business with the revenue it was making.

    Founder conflicts: Some startups suffered from internal disagreements and disputes among the founders, leading to loss of focus, vision, and trust. For example, Pivo, a fintech startup that offered banking services to small supply chain businesses, shut down after a fallout between the co-founders over strategy and direction. Likewise, Bundle, a cryptocurrency exchange, shut down as part of the shareholders’ decision to restructure the business and focus on another product.

    External factors: Some startups faced external challenges that were beyond their control, such as market conditions, competition, regulation, and politics. For example, Rondo, a platform that connected travelers with local guides, shut down after the COVID-19 pandemic severely affected the tourism industry. Similarly, 54Gene and Pivo faced regulatory hurdles and scrutiny from the government and other stakeholders.

    The Strategies for Startup Success in Nigeria

    While there is no guarantee for startup success, there are some strategies that can help entrepreneurs increase their chances of building a sustainable and scalable business in Nigeria. These include:

    Conducting proper market research: Entrepreneurs should validate their ideas and assumptions by conducting thorough market research, including customer interviews, surveys, and experiments. They should identify the problem they are solving, the target market they are serving, the value proposition they are offering, and the competitive advantage they have over others.

    Seeking mentorship and guidance: Entrepreneurs should seek advice and feedback from mentors, advisors, and experts who have relevant experience and knowledge in their field. They should also join networks and communities of other entrepreneurs, investors, and stakeholders who can provide support, resources, and opportunities.

    Managing cash flow and expenses: Entrepreneurs should monitor and control their cash flow and expenses, and avoid spending money on unnecessary things. They should also plan and budget for their runway, and raise funds only when they need it and when they have a clear plan for how to use it.

    Building a strong team and culture: Entrepreneurs should recruit and retain talented and passionate people who share their vision and values. They should also foster a culture of collaboration, communication, and innovation, and resolve any conflicts or issues quickly and amicably.

    Leveraging technology and innovation: Entrepreneurs should use technology and innovation to overcome infrastructure and operational challenges, and to deliver value to their customers. They should also keep abreast of the latest trends and developments in their industry, and adapt and pivot as needed.

    Navigating regulatory and legal requirements: Entrepreneurs should comply with the relevant laws and regulations in their sector, and seek legal counsel when necessary. They should also engage and collaborate with the government and other stakeholders to advocate for policies and reforms that support the growth and development of the tech ecosystem.

    Nigeria is a country with enormous opportunities and challenges for tech startups. While many startups have failed in the past, there are also many success stories and lessons to learn from. By applying the strategies outlined above, entrepreneurs can increase their chances of building successful and impactful businesses in Nigeria in 2024 and beyond.