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Fundraising in French-speaking Africa | understanding fundraising typologies

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YOU OFTEN HEAR ABOUT SEED, SERIE A AND SERIE C AND WANT TO UNDERSTAND THE DIFFERENT TYPES OF FUNDRAISING IN FRENCH-SPEAKING AFRICA?

WELCOME ON BOARD – THIS ARTICLE WILL HELP YOU GAIN A BETTER UNDERSTANDING OF THE DIFFERENT TYPES OF FUNDRAISING.

1. PRE-SEED FUNDRAISING

Pre-seed is the stage that precedes seed. It’s the first round of financing that gets the startup’s project off the ground.

This financing generally makes it possible to :

  • producing the MVP (minimum viable product);
  • product/service launch to obtain feedback from the first customers;
  • test your startup’s business model.

2. SEED CAPITAL RAISING

The Seed financing round is the startup’s first. This type of fund-raising comes into play when the start-up is generating its first sales and needs to continue expanding to sustain its business.

This type of financing is generally used to fund :

  • first recruitments ;
  • startup communication and marketing;
  • put extra effort into sales to generate more revenue.

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3. SERIES A FUND-RAISING

Series A funding comes into play when a start-up has found its product-market-fit and needs financing to accelerate its development. The objectives of this round of financing are to :

  • accelerate the startup’s growth;
  • to conquer the national market;
  • speed up recruitment;
  • protect innovations.

4. SERIES B FUNDRAISING

This round of financing comes after the Series A and traditionally allows the startup :

  • pursue growth ;
  • internationalize by opening up to other markets;
  • develop a new branch;
  • acquire competitors when necessary to help the startup grow faster.

Sign up for our fundraising training course!

REGISTRATION

5. SERIES C FUND RAISING

A start-up that reaches this level is ready to diversify its offer and wants to continue acquiring international markets to become the market leader. The aim of this series, which generally precedes the IPO, is to :

  • acquisition of competitors ;
  • increased recruitment ;
  • internationalization; and.
  • offer diversification

 

 

✍️ If you would like more information about fund-raising in French-speaking Africa, please register for our next training session on “Keys to successful fund-raising in French-speaking Africa“, or contact us for assistance: hello@africanlegalfactory.com.

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