Olumide Soyombo, an astute figure in Nigeria’s burgeoning startup ecosystem, has carved a notable niche since embarking on his investment odyssey in 2014. His influence resonates through a tapestry of innovation, weaving together illustrious startups such as Paystack — now under Stripe’s aegis — alongside PiggyVest and TeamApt, setting a remarkable precedent.
In his relentless pursuit of fostering ingenuity, Soyombo founded Voltron, a venture aimed explicitly at bridging the perilous chasm of early-stage funding for African technology enterprises. This fund zeroes in on lucrative prospects across key African territories—including Nigeria, Kenya, South Africa, and North Africa—channeling investments ranging from a modest $20,000 to a substantial $100,000.
In a candid dialogue with Business Insider Africa, Soyombo unravelled the intricate tapestry of factors that underpin successful tech ventures, underscoring the pivotal role of founder-market alignment and the dynamic evolution of opportunities shimmering across Africa’s tech landscape.
BI: What are the key factors you consider when deciding to invest in a tech startup in Africa?
At the epicenter of every investment decision is the founder and their formidable team. They are the architects of the product, orchestrating its market entry and sculpting its success. My focus zeroes in on the founder—what’s their depth of knowledge about their industry? What distinctive insights do they incorporate? It’s these nuances that can spell the difference between success and failure.
Equally crucial is the market’s dimensions—how expansive is it? Can this venture scale to entice venture capitalists? And critically, should it flourish, what does the exit strategy look like? These queries are the backbone of every investor’s due diligence.
BI: As an investor, how do you approach mentorship?
Mentorship transcends mere advice; it involves a profound commitment, particularly in the nascent phases of startup development. As an early-stage investor, my role leans towards co-founding—sometimes even donning the hat of a confidant or therapist.
Navigating the myriad challenges alongside the founder is essential—assisting them in pinpointing the elusive product-market fit. This collaboration transforms into a partnership where reciprocal learning thrives: you absorb insights about their market intricacies while they benefit from your strategic guidance.
BI: How do you manage risk in your investments, especially in a volatile market like Africa’s?
When it comes to risk management in Africa’s vibrant landscape, there exists no panacea. Risk is inherently woven into the fabric of investment; if we had a foolproof formula, we’d all be visionaries! Instead, we draw invaluable lessons from our experiences, gleaning knowledge from analogous markets, adjusting strategies to fit local peculiarities, and daring to leap into the unknown. It’s about experimentation, refinement, and evolved understanding—remaining agile and receptive to the currents of change.
BI: What predictions do you have for the future of the tech industry in Africa over the next decade?
Peering into the horizon of Africa’s tech ecosystem, my optimism knows no bounds. We are witnessing a phenomenal demographic surge, with a youthful, digitally-savvy population poised to be the harbingers of technological transformation. This dynamic offers a golden opportunity to enhance daily lives while supercharging business efficiencies. With an average age under 20, Africa stands on the brink of igniting the next wave of global innovation. The forthcoming decade promises to be profoundly exhilarating.
BI: What advice would you give to aspiring tech entrepreneurs in Africa today?
For those igniting their entrepreneurial spark in Africa’s tech domain, the cornerstone of advice is to invest in yourself. Cultivating your skills is paramount. The continent harbors immense potential to transform into the global epicenter for knowledge-driven talent, especially as other regions grapple with aging populations. So, harness your skills, harbor audacious dreams, and engineer solutions that resonate globally while remaining authentically African.
