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Top 10 Ways African Tech Startups Can Fund Themselves in 2019

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African tech startups

African startups often fail to take off or make it big due to a lack of funding. In this guide, you will discover ten funding options for African tech startups that could help you to kickstart your company and turn it into a raging success in 2019.

Bootstrapping

Bootstrapping is the first funding option every tech startup should consider. This means that as an entrepreneur you will solely rely on your money and company resources to scale and run your business operations.

Bootstrapping is beneficial because it saves your company from debt and makes your business more attractive to potential investors and lenders. Another advantage that comes with bootstrapping is that you will become more business savvy as you get better at creating revenue and boosting your profits without external financial help.

Here are the possible options you can use to fund your tech startup through bootstrapping:

  • Let the customer pay for your initial job. This simply entails asking the customer to pay for the money you will use in building a tech solution for them.
  • Reduce expenses through sharing your workspace with other businesses to reduce the cost of office rent. You could run your company remotely to alleviate office costs entirely. You might also consider sharing employees and office equipment or hiring consultants instead of hiring people permanently.
  • Offer your employees the option to work for equity instead of cash.

Unfortunately, without an efficient marketing technique to bring in customers quickly the business might fail. Moreover, it will take longer to grow your company without investment.

Small Business Loans

startup fundingOnce you have successfully grown your startup through bootstrapping, then you can move to the second funding option which is applying for a small business loan to expand your business.

Loans for startups and small businesses are not easily accessible in Africa but with a strong business plan, an existing customer base, and adequate cash flow, banks, micro-finance institutions, savings and credit co-operatives, and mobile app lenders may lend you money to grow your business. However, these loans often come with high interest rates. Hence, it is important to ensure beforehand that you will be able to repay the loan plus interest in full and on time.

You will generally need the following to secure a small business loan:

  • A business plan
  • A good credit score
  • A record of your business financials e.g. tax income returns
  • Business licenses and other legal documents
  • Collateral

Angel Investors

An angel investor is a wealthy person who is looking to make investments that could potentially result in high returns. If an angel investor believes in what you are doing and they believe that your business will succeed, they may inject capital into your startup in exchange for ownership equity or convertible debt.

Financing your tech startup through an angel investor is beneficial because it is less risky than debt financing. Additionally, angel investors also offer mentorship to founders, thereby, enabling them to run their businesses more effectively.

Angel investors can be wealthy individuals, groups, family members, or friends. Examples of angel investor groups in Africa include Jozi AngelsAngel Investment Network, Team Africa Ventures, and Ghana Angel Investor Network.

To attract an angel investor, your business needs to be:

  • Innovative
  • Scalable
  • On the path to profitability

Additionally, your startup should also have a strong business plan and a strong team of founders because investors generally invest in people and not ideas.

Venture Capital

African startupsVenture capital firms invest in businesses that have a high potential for growth. VC generate a return on their investments when the company they invested in gets bought up, goes public or they can sell their stake to another investment firm.

Unlike angel investors, venture capital companies generally invest larger amounts of capital into a business. However, VC investment tends to come with conditions that are not always favourable to the startup founders so potential VC investments need to be looked at in detail to see whether they truly benefit the business and its owners or primarily the VC firm.

While some angel investors are motivated to help startups grow through mentorship and capital, venture capitalists are often interested in finding the best business that can make them the most money.

Before approaching a venture capital firm:

  • Do your research
  • Evaluate the growth potential the current target market offers your business
  • Talk to other startups that have raised funds through venture capitalists and learn from their experiences
  • Build your idea and gain traction
  • Create a short and catchy pitch deck
  • Consider bootstrapping, small business loans, and angel investors first

Some of the top venture capital firms in Africa include Matamba Anonaka Technology Holdings (MATHs) and Adlevo Capital.

Startup Incubators/Accelerators

Startup incubators concentrate on innovation while accelerators focus on growth. Tech startups have to apply to be accepted into an accelerator or an incubator program. Once they are picked, startups are given a small amount of seed funding in exchange for a small equity percentage.

Accelerators offer startups a mentorship network which they leverage to grow their businesses. In addition, accelerator programs help startups to build their businesses over a short period of time. Incubators are often characterised by a co-working environment, mentoring, networking, and some connection to the local community. Once a startup joins an incubator program, it gets the opportunity to polish up its idea, create a business plan, and work on a product that fits the target market.

Accelerators and incubators are important because:

  • You receive mentorship
  • You get access to future investors
  • You develop your skills
  • You are able to manage the risk associated with your concept
  • You are able to establish the next growth level of your business
  • You get access to a free or low-cost working space

Accelerators and incubators are ideal for startup founders that want to start their businesses on the right foot. Some examples of accelerators and incubators in Africa include Injini, Google Launchpad Accelerator Africa, FB Start Accelerator, iHub, and MMH Accelerator.

Business Grants

african startup fundingBusiness grants are non-repayable funds that come with attached conditions. As long as you fulfill these conditions, then you will not have to repay the money.

Governments, foundations, organisations, large corporations, and trusts are often the givers of business grants. African tech startups simply have to look for a grant that fits their needs before making an application.

The upside of receiving a business grant is that you do not have to repay it or give up any shares. Moreover, you can use the fact that a large corporation or a government has given you a grant as a promotional mechanism.

Examples of organisations that offer grants include Shell LiveWire, Africa Women’s Development Fund, Jack Ma’s Africa Netpreneur Prize Initiative 2019 and Miss.Africa Initiative.

Pitching Competitions

Startup contests and pitching competitions are other ways of funding your tech startup. These opportunities enable a startup to pitch its ideas to potential investors while interacting with a wide network of people that could contribute positively to the growth of its business.

Other perks are competition prizes, support from incubators or accelerators, mentorship, and free access to industry events.

To win a pitching competition, you need to:

  • Follow the rules
  • Know your material
  • Open with a close and catch the attention of the audience

Examples of pitching competitions for African tech startups include MEST Africa Challenge, Seedstars World Competition, and Sanofi in Africa VivaTechnology Challenges.

Online Crowdfunding

Online crowdfunding entails raising small amounts of money on the Internet from a large number of people. There are two types of online crowdfunding: equity and rewards-based. Equity-based crowdfunding entails offering shares in exchange for capital while in reward-based crowdfunding, “investors” are given an incentive or a reward.

Online crowdfunding platforms offer an efficient way to raise money and access thousands of potential investors.

Here is how you participate in online crowdfunding:

  • Determine the type of online crowdfunding you want
  • Research crowdfunding platforms
  • Choose the best platform for your business and post your campaign
  • Use social media to promote your campaign

African crowdfunding platforms include Uprise.Africa, Thundafund, M-Changa, and Afrikstart.

Initial Coin Offering (ICO)

ICORaising money through an initial coin offering (ICO) is another funding option that has been gaining popularity over the recent years thanks to the emergence of blockchain technology and cryptocurrencies. During an ICO, tokens are sold to the public as a means to raise funds.

ICOs were very popular in 2017 but have since lost their appeal as regulators across the globe have made it clear that companies will no longer be able to raise millions without having to adhere to any regulations. Hence, there is regulatory risk involved in launching an ICO.

To launch an ICO, do the following:

  • Research ICOs and the regulations guiding this type of funding in your country
  • Decide on what type of token you want to launch and how it will fit into your product or service
  • Put together a team of skilled people and advisors
  • Create a project roadmap, whitepaper, and website
  • Engage with the crypto community
  • Market your ICO
  • List your token on exchanges

Security Token Offering (STO)

The final funding option on our list is the security token offering (STO). An STO refers to the process of offering tokenised securities for sale, i.e. tokens that are representations of securities such as bonds and stocks.

In an STO, the value of the security tokens is dependent on the value of the company or the underlying asset. In addition, there is more regulation in an STO than in an ICO since securities are regulated.

However, the STO market is still young and has not been tested in the long-term. This means that there is a risk for both startups and investors. Furthermore, STOs require a startup to create its own tokens and a platform to manage them which is costly.

What to do before launching an STO:

  • Understand the compliance regulations in your country
  • Create an STO business plan
  • Seek the consultancy services of an STO development company to create and manage your security tokens
  • Market your STO to reach as many investors as possible

With these ten funding options to choose from, you could be on the path to ensuring that your startup will turn into a success story.

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Can You Win Real Money by Playing Crypto Slots?

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Crypto Slots

Introduction to Crypto Slots

Crypto slots are a form of gambling machine that lets you take a chance with digital currencies. They’re reminiscent of old gambling machines, but they do have a surprise ending: you can bet your money using cryptos. This tends to make them an appealing choice for those interested in betting on Bitcoin or various other cryptos. The possibility of big wins has been one of the factors that make crypto slots quite thrilling. At a certain crypto slot machine, numerous players have won progressive jackpot valued at hundreds of dollars. There are a variety of jackpot sizes available, and they continue to increase as more players play them. 

Is Playing Crypto Slots Legal?

In general, there are no laws that specifically apply to crypto slots. It is neither permitted nor prohibited by law. Authorities’ perspectives on cryptocurrencies are swiftly shifting, with more nations adopting a favorable stance and debating how to regulate them specifically as well as blockchain-based businesses in general.

Authorities in nations where gambling is outright forbidden, like the United States, may yet impose severe penalties on gambling websites and/or bettors who utilize cryptocurrencies. A few international gambling jurisdictions have already granted licences to casinos that accept cryptocurrency, implying that they accept responsibility for cryptocurrency operations on gambling websites. You can check out the top crypto slots sites listed in CryptoNewsZ’s gambling section.

Can You Win Real Money by Playing Crypto Slots?

They’re generally free-to-play, and if you hit it big on a cryptocurrency slot machine, you can cash out your prize money without having to pay a casino fee. It’s no surprise that people are increasingly preferring to play with cryptocurrencies rather than real money.

Tips to Play Crypto Slots?

There’s a little research you can do to improve your likelihood of victory when playing crypto slots. Here are some pointers to get you started:

  1. Select a reputable gambling establishment. Not all casinos are the same, and some have a better reputation than the others. Before you choose a casino to play at, make absolutely sure you do your homework.
  2. Go over the terms & conditions with a fine tooth comb. This is extremely true when it comes to crypto slots, as these games may have their own set of rules. Before you start playing, take the time to understand what you’re getting yourself into.
  3. Play responsibly when gambling. Because crypto slot machines can be habit forming, set boundaries for yourself and don’t risk too much more than you can stand to lose.
  4. Bonus seekers, do your homework. Some casinos have good bonus payments than in others, so do your research to see which one has the best possible deal prior to actually registering and dumping money into the account.
  5. Keep a close eye on the jackpot in the game. Most of these games have jackpot games, which means that the prize grows as more people participate. These aren’t the games for you if you’re hoping for a fast win. However, if you have some spare time and would like to try your luck at winning a reality-changing prize, keep a sharp eye on the jackpot.
  6. Practice with the demo before wagering real money. A few crypto slots give a free-play mode, allowing you to practise without risking any of your own finances. Before you begin placing bets, you could use this time to familiarise yourself with the game, figure out which strategic plan works the best, and estimate your prize earnings.

Related Article: Best Crypto Gambling Sites

Benefits of Playing Crypto Slots

Among the most compelling reasons for players to use cryptos are the unmatched advantages they can provide, such as instantaneity, security, and Internet of Value. Nevertheless, there are some advantages to using cryptocurrencies such as bitcoin and Ethereum to play slots. Many players would prefer confidentiality when they play – for example, folks who don’t want their betting history scrutinised when getting a mortgage! Players can also have complete anonymity when using blockchain-based currencies because they don’t have to provide any personal information other than their wallet number to connect their online casino account to their cryptocurrency account.

You must make sure that your payments are safe in order for no one else to gain access to the account and withdraw your prize money.   In contrast to the traditional payment options, where you won’t see your money in the account for 3-5 business days after drawdown, cryptocurrencies provide amazingly fast and even immediate withdrawals, allowing you to enjoy your winnings sooner. With Blockchain technology and crypto-casinos, you could indeed play from anywhere in the globe. Low or no service charges are yet another added benefit of using crypto because there are no 3rd-party service costs to pay and also no payment restrictions.

Conclusion

Crypto slots are a form of gambling game that generates different numbers using blockchain technology. They’re a new take on traditional gambling machines, giving the players so much more control over their wagers because the figures aren’t generated by a single company or person. Crypto slot machines use random number generators to generate their outcomes, there is an element of luck engaged, but you can improve your likelihood of victory by planning how much you wager for every spin as well as which kinds of slot games to enjoy.

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4 Tips for Managing Your Emotions When Trading Crypto

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Managing Your Emotions When Trading

Dealing with emotions is a natural part of being human. How you feel can significantly impact the world around you, and that is an indisputable fact in life. However, the world of cryptocurrency trading can be an unforgiving place for the overly emotional. If you let your feelings cloud your decision-making, you risk selling too early, running losses, and missing out on significantly profitable opportunities had you stopped for a moment and thought the matter through with a clearer headspace.

For example, after hearing some concerning rumors, you rashly decided to empty out your XMR wallet and other crypto exchanges for fear of losing money. After some time, however, the prices bounce back higher than before, which is a cause for dismay because you lost all of your investment due to a rash decision on your part.

Hence, it is crucial to keep your emotions in check when trading. This is especially the case when you are trading in an extremely volatile industry such as cryptocurrency. The crypto market is notorious for its constantly fluctuating values and massive price swings. It can strike fear, panic, and greed in the least suspecting and cost you more than what you bargained for.

Whether you are new or experienced in dealing with crypto, managing one’s emotions is a must-have tool in your trader’s toolbox. To help you master this skill, here are some tips to keep in mind as you traverse the wild, harsh landscape of crypto trading.

Develop a Risk Management Plan

Risk management is an integral part of any kind of investment venture. You want to ensure that you have backups in place in case a situation arises that may threaten your initial investment. However, many new traders overlook the importance of considering their emotional responses and their risk tolerance when formulating their risk management plans. As a result, their plans crumble in the face of high-pressure situations.

As such, always consider your risk tolerance when developing a plan to mitigate trading risks. In fact, many trading consultants use it as a basis for forming your trading plan. By doing so, you can ensure that you are only taking on what you can handle emotionally as you work your way to reaching your financial goals. Over time, as you become more experienced and more in control of your emotional responses, you can decide to take on more risks.

Conduct In-Depth Research

One of the most effective ways to handle frantic feelings is to counter them with cold, harsh facts. Aside from your risk management plan, it is wise to conduct some research on your own that can substantiate or debunk any concerning news or rumors that might cause you to buy or sell on an impulse. For example, after hearing from another trader that one of the digital coins you invested in has died due to a lack of community support, you might be tempted to liquidate the entirety of your investment. However, after some digging, you determined that the community is still active and invested in improving said cryptocurrency.

It is also important to do your homework when picking which coins to support. Make sure to check the cryptocurrency’s whitepaper and the developers’ activities for a clearer idea of the coin’s potential. In this manner, you can feel assured that your investments have a high potential of bearing fruit in the future.

Do Not Obsess Over Market Charts

Many traders new to the crypto industry fall into the trap of obsessing over market charts. The constant flickering of colors and lights can be hypnotising to the unaware. They watch price fluctuations all day to ensure that they can take note of sudden price hikes and dips, which may lead down a path to profitable opportunities.

However, this method is not helpful to your mental and emotional health. Indeed, it can feel like an emotional rollercoaster watching prices go up and down continuously. Processing significant amounts of information for too long can wear you down over time and may instead cause you to decide poorly when an opportunity arrives. Thus, a word of advice: do not let the market chart take over you.

Take Advantage of Limit Orders

Signing into your crypto exchange after some time and learning that the value of your investment has plummeted is a reasonable fear for many traders. After all, it is not healthy to watch market charts like a hawk, and in the crypto space, so many things can happen after a short span of time. Fortunately, many crypto exchanges have stop-loss features. This is a feature that automatically sells your coins once their prices decline to a certain value. In this manner, you can feel assured that your investment remains intact, assuaging any fear or worry you may have while not on the crypto exchange.

Removing emotions from any decision-making process that you make is almost impossible. In a highly complex and volatile market like cryptocurrency, conquering your initial emotional responses and maintaining a clear head is a skill that you have to master through experience. By doing so, you can keep your eyes on the prize and trade in a manner that is most helpful to your needs.

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How to Bet with Bitcoin on Football

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With the new football season having started, it’s time to learn how you can bet with bitcoin on your favorite football club. The good news is that many online betting companies now accept bitcoin.

Read on to learn why betting companies love bitcoin and how to bet with BTC on your football team.

Why Betting Companies Support Bitcoin

Since its establishment in 2009, Bitcoin (BTC) has been and continues to be the most popular cryptocurrency, and with good reason. Some of Bitcoin’s most impactful features include:

1. Fast and inexpensive

With bitcoin, it takes a few minutes to send and receive any amount of money. And if you are using the Bitcoin Lightning Network to make payments, transaction costs are a few cents.

2. No third-party interference

Because of its decentralized nature, which makes it impossible for anyone (including governments) to control, you can feel safe to make any payments you want (including to online betting platforms). This also comes with the added advantage of not having to disclose your personal information when making a payment.

3. Supports borderless payments

With Bitcoin’s decentralized nature comes its borderless characteristics. This makes it possible for anyone in the world to be able to send and receive bitcoin payments wherever they are.

Betting companies were among the first adopters of bitcoin because it enables them to reach a broader audience and provide an innovative digital payment option to bettors. From playing a bitcoin slot to betting on any sport imaginable, bitcoin casinos and online betting companies have truly embraced bitcoin.

The credibility of bitcoin as a financial and payment solution is also being felt in the world of football. For example, in April 2021, Southhampton F.C began paying its players bonuses in bitcoin, opening up a whole world of possibility for other clubs to start doing the same.

How to Bet With Bitcoin on Football

Bet with Bitcoin on Football

Betting with bitcoin has proved to be an efficient process for bettors, and betting companies who have embraced cryptocurrency as an efficient payment system.

One of the leading sports betting companies that enables you to bet with bitcoin is Sportsbet.io. So let’s dive in and show you how you can bet with bitcoin on this popular platform.

Betting with Bitcoin on Sportsbet.io

Sportsbet.io is a user-friendly and highly modern betting platform. It has a functional live betting service and is one of the few betting companies that will allow you to bet in bitcoin through a few easy steps.

  1. Register for Sportsbet.io by clicking on the ‘Create an Account’ tab on the top right of the homepage.
  2. Access your wallet by logging into Sportsbet.io. On the top right of the page, next to your balance, click your balance or the ‘Deposit’ button.
  3. Next, you click on ‘Use Currency’ and on ‘Deposit.’
  4. A QR code will appear.
  5. Open your bitcoin wallet, scan the QR code, and choose how much BTC you want to send to your betting account.
  6. You will have to wait for three confirmations on the Bitcoin blockchain for your funds to settle in your SportsBet.io account.
  7. Start betting on your team(s).

Now that we have started you off on your journey, happy betting, and may the odds be ever in your favour!

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