It’s the 21st century, and things are changing fast. The world is evolving, and we, as humans, need to evolve along with it. In the last few decades, the world has undergone a tremendous change, thus, changing the way we do business and carry out our work. That’s why investing in Technology startups is important.
Lately, new technology startups are springing up everywhere, in Africa and Nigeria, especially. A major contributing factor to this sudden surge in technological startups is the covid-19 pandemic. Many people have realized that what they used to do every day before the pandemic can now be done even faster and better in the comfort of their homes. There’s also the enlightenment many people have gotten about technology and how it will take over the world very soon if it has not already taken over.
Most of these new startups raise pre-seed funding and pitch for funds from angel investors and startup capitalists or partner with other tech firms to expand their businesses, reach their market target, and make huge profits to keep the brand growing.
Some of the new technology startups in Nigeria are Gokada, Cowrywise, Kuda bank, Flutterwave, Piggyvest, Opay, Paystack, Farmcrowdy, Eden life, Helium Health, to name a few.
Many of these startups are in the Fintech space. They ease modes of transactions of Nigerians, make saving more effortless and less complicated, and ensure the implementation of a cashless policy.
For example, Helium Health is a brand in the health technology sector, the first of the two health sectors in the technological ecosystem. It uses the data and insights into the status of healthcare in Africa. Founded in 2016 by three young men and featured in Forbes under 30 list in 2019, the startup has been adopted by more than 5,000 health professionals to manage more than 165,000 patients monthly.
Flutterwave is another example of a successful technology startup whose mission is to transform payments in Africa and the whole world. Flutterwave is one of the most influential companies, according to the TIME 100 list. It is a company that has the quality of delivering its promise of secure payment solutions for businesses.
What is a Technology Startup?
A technology startup is when a company focuses on the sole purpose of bringing technological services and products to the market when the only aim of such a company or venture is to bring the products and services technology can offer to the people.
More examples of startups in the technology space, especially in Africa, are Safeboda, Patricia, Life Bank, Fundall, Zindi, Payourse, Gozem, Crypto Pharaohs, De Novo Dairy, SweepSouth, mPharma, and so much more.
Investing in Startup Technology is The New Normal
Technology is the next big thing, safe to say it is the new big thing, and many people are pitching in it, and the earlier you pitch, the bigger your rewards. One of the advantages of investing in technology startups early enough is that you gain a more significant percentage of the market share. Also, you can make as many sales as you can before others get to know of the opportunities.
When you invest in technology startups, you have a series of options to pick from. You can invest in agricultural technology, medical technology, financial technology, or information technology. You can also invest in technology startups that fit your goals and budgeted capital.
It’s important to know that you do not put all your eggs in one basket when doing business. Investing in a technology startup will give you the advantage of having different portfolios. You can share your investments into varying categories of assets.
A technology startup is majorly an asset, and there is nothing better than investing in assets where your profits are assured, and your assets are confirmed to grow.
Another good thing about investing in startup technology is that you unconsciously impact society. Many startups bring about job creation and employability, positively contributing to the labor market. Furthermore, when you invest in technology startups, you promote innovations and provide for the consumers’ needs by bringing them closer to products or services that solve their problems.
More importantly, you get to attract investors to support your startup. You provide the business initiatives or ideas and get funded while the investors get a return on their investments. That’s a win-win situation for both parties.
Aside from angel investors, big companies also look out for startups whose ideas are a potential threat to their companies when they grow. Thus, they buy them off. They also buy new startups that they can leverage. Think of how Facebook acquired Instagram, Whatsapp, and Oculus.
If your startup is of a good initiative in the right sector and it sells at a high price to large companies, you can get very high returns on your investment startup.
What are the Benefits of Investing in Technology Startups?
Investing in technology startups gives room for growth. Also, technology startups make you more efficient, productive, and accountable. They also increase your profits margin compared to when you were involved in other businesses that were not part of the technology ecosystem.
Investing in technology startups also helps you maximize time. These times are judiciously used to improve communications skills with clients and investors, close deals, get funds for the company’s growth, and make profits for your business.
Additionally, it improves the quality of your business. Technology provides you with good insights that can help you make solid decisions, enabling you to provide the best products and services to consumers of technology, directly or indirectly. It also adds to the advantage of the quality of your business and helps you maintain a top position in the market.
Technology startups are the new hub of activities globally and have a lot of interests and advantages. Many people worldwide use technology every day, in one way or the other, no matter how minute. Back in the day, people painstakingly wrote their manuscripts with a pen, spending days, months, or even years before writing a book.
Then, in the 1900s, people started using typewriters to make their work easier and or faster. Using a typewriter was of little help as even that has its disadvantages and difficulties. In the late 1900s and early 2000s, computers came, which further eased human tasks and made writing a book more effortless and less stressful. It also made book publications faster and neater.
Investing in technology startups should be a thing everyone should start already, looking at all the advantages and benefits that we have highlighted above.