6 Tips to Prepare Your Fundraising Round in Francophone Africa

Before you start, ask yourself the right questions:

• Am I currently creating value within my company, progressively and sustainably?
• Is it genuinely relevant to raise funds at this stage?
• What is the growth strategy for my startup?

Fundraising is not an end in itself. It is a lever to keep taking risks and growing, while facing both existing and future competitive pressures. You need to be particularly clear-eyed and have a precise vision of where your company is headed.

Start your financing search as early as possible. The process can be lengthy, from the negotiation phase through to funds landing in your company's bank account. The rule: begin at least 6 to 9 months before your startup faces a cash shortfall.

Define your financing needs carefully to determine the amount your startup requires to take on new challenges over the next 12 to 18 months — hiring, entering new markets, R&D projects.

It is essential that your company continues generating revenue throughout the financing search. Raising funds in Africa is a lengthy process, involving multiple meetings with potential investors.

Appoint a single point of contact to lead the negotiations — typically the CEO. The rest of the team can then remain focused on the business and continue generating revenue.

Identifying the right investors is a prerequisite for a successful fundraising round. Research relevant players based on:

• your sector of activity;
• your stage of development;
• the amount you are looking to raise;
• the investor's typical commitment timeline;
• the target geographic territory;
• the composition of their portfolio.

The relationship with the investor must be built on trust. Tap into their ecosystem to gather feedback and introductions. Investors receive dozens of applications — a warm introduction from a trusted company in their network significantly increases your chances of getting a meeting.

The clarity of the information you provide to investors is the cornerstone of a successful fundraising round. Master your numbers and your key performance indicators — revenue, number of clients, conversion rate, customer acquisition cost.

Present a structured financial plan detailing:

• current and projected expenses;
• revenue generated;
• financing needs;
• how the funds raised will be deployed to increase revenue and build a viable business.

Work on your pitch and your storytelling. Knowing how to tell a compelling story, embody a mission and a vision, sets you apart. Professional communication materials — logo, press kit, executive summary — strengthen the credibility investors perceive.

The best founders close their fundraising rounds by being resilient and determined. They never give up, manage stress, accept criticism, and act on it when it is justified.

As with any major undertaking, surround yourself with the right people and seek advice from those with experience — specialist lawyers, founders who have already raised funds, sector mentors.