An innovative idea, a validated business model, a qualified team, and a seamless execution plan are important ingredients to launching a new business. But without the right amount of finance to fuel operations, a great idea will just be that — a great idea.
Acquiring finance is one of the most important tasks in a startup’s journey. There are multiple sources to finance a startup like founders’ savings, friends & families, loans from financial institutions, angel investors, and venture capital firms. In addition, startups can raise investment from startup support programs like incubation-acceleration firms and grants or competitions.
Shega’s ongoing research on the Ethiopian startup investment landscape indicates that more than 40 startups have raised funding in 2021 so far. This is already is higher than last year’s total number of funding and proof of the country’s growing startup ecosystem. However many startups still face challenges finding investors for their business.
In this piece, we take a look at various sources that can fund your startup in Ethiopia.
Angel Investors
Angels are individuals that invest money in early-stage startups. Angels are called angels because of the high-risk pre-seed or seed investments they make. These individuals usually…
