Panel Session II: From Grants to Growth Capital: The Evolving Web3 Playbook For Web3 African Founder

All right. Um, hi everyone. Um, rules of the panel session, just one question please. And, um, I would appreciate that everybody go straight to the point. Thank you.

So, um, yeah, first question. Um let's let's take it to um my chief at hashed emergent right and um one of one of the things I really enjoyed your um presentation and one of the things you mentioned especially about founders was the way they design you know perhaps design their decks their pitch decks and um um things regarding um how how do they present themselves how they present you the application for funding. You mentioned that um somewhat around 90% of the application sometimes are not even looked at and all that. So what are just three things that founders should pay attention to? Before that um if you're a founder, can I see your hand up?

You're a founder. All right, great. Um if you're a founder looking to raise um looking for grants, can I see your hand up? Just leave your hand hanging for grants. How about trying to raise funds like um you know preede seed and all that?

Okay, just a few of them. All right. So, I'd like you to have your opinion on um those three things they should work on before submitting grant or you know um fundraising proposals. Thank you.

Okay. Um so, uh thank you for that question. Um so I think it's different for um a lot of uh VCs it's different for a lot of fund before yes it's okay so the requirement um to get the attention you know it's different across board you know for different fund right but before I like share tips about pitch decks and all of that I want to also mention something that is quite important for founders to understand that most especially in web three in this space is relationships are gold mine right when it comes even when it comes to you know the VC space most especially in the web three space um of course at the same time if I emphasize on relationship that means that you have something to offer right you have a value you have something as a founder to offer value to offer whether it's your product or whatever whatever it is you're building but you have to understand that relationship is very important in this space right and that's why some of these opportunities that comes with connecting with people in conferences like this is important because you don't know where that connection can lead you to right um also if someone anybody body. It can be any key person in the ecosystem that can vouch for you. It's going to get the attention of this font much more than even your pitch deck before your pitch deck comes into play, right?

So the the the one thing you have to understand is these V is we're not looking for pitch decks, right? We're even running away from it, right? It's not that, oh, your pitch deck is going to have this, it's going to have that, it's going to have um this color, it's going to have all of that. No, that is fine. But what you have to understand first of all is there has to be something else that you can leverage to get their attention before you even submit your pitch deck.

Right? And that's something a lot of African founders need to understand. And one of those such thing is like I mentioned is relationship, right? It can be anybody. It can be any key fellow.

Right? Because at the end of the day during our due diligence process, we tend to ask people who is this guy, right? We tend to ask people what have you done before? You've worked with so so and so person in the ecosystem. How was your experience working with this person?

Right? So it doesn't matter if your pitch deck is 10 over 10. If we get response from people doing the due diligence, maybe your former employer or your former employ uh fellow employees, what they tell us can also affect you know the decision that we make right um I'm just going to give a very good example of uh this is not an African founder right this is one of an Indian founder that came into uh that approached us with his pitch and everything. So he got connected to the fund through someone else that you know is connected to the fund and

a big thank shared every of the details about his life his past experience and everything and then we began to dig deep into this product and this person's experience right to confirm what would happen and later on we found out that there was a broken bridge that he you know like there was something that happened with his past investors. So he was raising another round. He was raising a seed round and during his pre round something happened and he broke the relationship with them. So we had a conversation with these found with these um investors and they were like oh great product great founder but here is this you have to look out for this right. So that already just gave us some sort of hesitation like okay we need to step back a bit before making this decision uh of whether going forward or not.

Now, in terms of the pitch deck, of course, these are something you can find online, you find on YouTube. Uh, like I said, I'm not going to dwell on that. The three things you need to, you know, um, pay attention to your pitch, but you can find them online. And one of such thing is, of course, storytelling, right? One of such thing is narrative.

If you're able to convey your narrative, your your whatever you're building in a clear manner, I'm telling you, you're going to get the attention of, you know, the fund, right? You're going to get attention of people that are looking into your uh pitch decks. But please, like I said, don't spend too much of your time designing, redesigning, refiguring, configuring your pitch decks, right? Keep it as simple as possible. Go straight to the point.

share the problem you're you're trying to solve, share the solution, share every of the key metrics that you that you think are important to uh the VC and I'm sure that once it grabs the attention of the VC then you'll be able to get a response from them. Yeah,

please can we give him a round of applause. I mean that was profound. um keeping your connections, making very good use of your connections, having a good storytelling, you know, narrative, you know, that really improves your um entire flow. So, um we'll be moving on to Chidubm. Um good to meet you, Chidbeam.

All right. you lead um um ecosystem Africa ecosystem at lisk and um well it's been a lot you know building community you know relating with a lot of founders potential you know founders as well running hackathons and all that so how would you say in your own words that um community contributes to um emergence of good founders how would you say

interesting question. Um, you know what is interesting is that community definitely contributes to measures of good founders but I think that it is structured community right so what do I mean by that so there's something that we essentially do at least you know I spoke about this this earlier where we essentially have like very strong so when you say you know mentors all of these pay to our incubator programs right where we're building that out with like people who have invested funds in the ecosystem them who are multi-time founders, all of those things. Um, and then we have physical hubs where some of these founders essentially go there for like a couple of weeks. So, we have a residency. So, the reason why I said structured community is that what that does for you is a couple of things, right?

So, you have the first set of people who are able to try out your product. You can get Google research, right? You have mentors who are able to direct you in stuff beyond just like you're building from a technical perspective. So what sort of things you should be thinking about with regards to like GTM right with regards to like regulations and compliance and all of those things and then going further you now have the broader ecosystem where you can start your amplification right your initial distribution your first 100 200 300 users um so I think for me it is community is awesome but it's definitely important to have structured community because sometimes you have like you know community members that are just because at the end of the Like historically a lot of community from a blockchain perspective has actually been token holders like that was an initial community community of like token holders right so if you're building out a product that is not necessarily leveraging like tokens right you need a structured community that actually helps you because if you're taking a product to the market that is not useful it's like terrible have a few people use but your retention will be bad right your strategy might be bad you might not be able to communicate with regulators you might not be able to raise additional capital. So I think when people are thinking about community especially from a founders perspective you need to understand what is actually important for your growth as a founder because something to note is that when people are investing in you they invest in you as an individual first right um so your community is great because of course like it's it essentially helps you so interesting I was listening to this podcast um it was about hive mapper right they were trying to do something similar to what like Google maps is doing they were actually not on the blockchain initially I think they're even on like Solana right now Right.

But something that stuck with me was he said that when they're not um on the blockchain of course what what I think their product was like people essentially drives you have like a device on your car you drive around and then that maps out the area right which is why they were like the Google maps competitor but when they came on the blockchain what was different for them is that now you have a community of people that areing other so now because you believe like okay I'm part of this ecosystem have owners on example now you're helping other people right so like it's something very powerful about the blockchain ecosystem where like people you don't know from anywhere because you're now in the ecosystem they're pushing your products like it's their own right it's like now you have a loyal it's almost like a family right talking about your products here and there you don't know them from anywhere and I think that's one of best and powerful parts of like that helps like

wow that's that's So lovely. Please your hands together. Thank you. I mean it's it's really really so lovely because um I I'll just share a very brief example for myself. Um I really started using bass when as I was introduced um I was not not that I wasn't a fan of bass yet but I mean there was should I say almost nothing I would use bass for right you know apart from maybe perhaps just once in a while but when was introduced I mean the ease of converting I'm not trying to shield please.

I don't I do not work with them but I mean that's just a practical use case that I mean people are benefiting from. So that's something you should work on as a founder. Let it be um stuff that um people actually actual use cases not don't just build just to raise funds right I I know a folk um um who was trying to build something he had not even started building. He had no MVP and he was already talking about raising funds. I mean that's that's pretty much wrong.

At least you have to get started with something. let there be a proof of work and then you you know go into raising funds. So it's really beautiful. Once again let's put our hands together for chem. Thank you so much.

All right. So now we have uh Mr. Obina. Um so I'll come from this perspective. I found your latest post one of your latest post on Twitter and um I had a screen I have a screenshot of it.

Yes. So you said um low purchasing power is not a problem at all in Africa. Do we agree with that? Do we agree? I'm throwing the question to the audience.

Do we agree?

No. All right. So he said um low purchasing power is not a problem at all in Africa. The inability to put all that small parts together into one power is what's missing. I understand your point of view perfectly.

But in terms of building right in terms of um people actually um you know trying to set up things we what what would you say is um is how to fix that gap because we cannot completely say um low purchasing power is not um you know a problem in Africa. It's I feel it's a problem but if you have diver divergent view I mean you could just you know throw more light on that and especially in relation to builders founders you know when things cost of things are pretty much expensive how do founders you know even get started from the scratch especially for instance I'll just sh an example most founders in Africa do not go into hardware why they will tell you hardware is expensive so everybody does software right that's because there's low purchasing you cannot buy circuit you know circuit boards and all those electronics you know that you have to use to put things together, right? So, how do we bridge this gap of um you know um purchasing stuff that you need to get started with, you know, to build the ideas that you have? Thank you.

Well, thank you very much. So, um that particular tweet that you referenced is um not really talking about buying stuff that you need to build. So I was looking at it from the perspective of why projects not succeeding. Oh there's no purchasing power. Why are there no successful African project?

Um I do not um want it to be on the narrative of use my product because it's African. No. Did you build something that can serve us and can stand on the global standard? Right. Then we now have to deal with the issue of the um it's like what you call capital of nights.

Yes. Purchasing power in Africa cannot be compared to what you see in Saudi As Asia, in Europe and North America. But purchasing power in Africa is tangible because if it is not projects won't be coming to Africa. Now what I am looking at is how can Africans rally around African project that have met global standard. I give you an example.

My current focus asset chain. We need liquidity on asset chain. Do you want to tell me that we can't find 1 million Nigerians who can afford a $100 and if we all put that $1001 million Nigerians $100 on asset chain that's $100 million isn't that liquidity so you see low purchasing power is not a problem so we shouldn't sit waiting for that institution that is coming to put one million $100 million in them so it's a lack of focus and structured coordination. Just like Sudin mentioned, we have communities but the communities seem to be um you know fragmented right we are not having a coordinated approach and it is a problem in Africa because it stems from way society is run even the government if you ask the government what is your next 20 year plan we there is none in existence so even in the blockchain sector Do we as stakeholders as you know um the the players do we have a plan where are we going in the next 5 years where are we going in the next 10 years and I tell you we have that funding that we can all put we can even set up a blockchain fund so I'm looking at it from the perspective of African projects getting African support from the African African community. All right, that is a thing that can happen.

But it needs to have a coordinated approach. One of the things it will do is that it will help to give other African projects a leap because we just need one success story. All we need is just one success story. And if we have that one success story then you will see it spring up so many successes. So we have not had that I currently open 2049 is going on is the biggest for three events in the world.

Somehow I'm a partner with them but even the partnership that I have with them does not give me the the influence to shape certain things. For example, I'm a partner. They are cool having me as a partner. But they are not cool having me as a speaker. In fact, there is no African that is speaking on that stage.

Why? Because we do not yet command that global influence. You know, in fact, they don't even believe that Africans can come to the event because they like how many people are going to come. And I tell them, we can get more than a 100 people from Nigeria alone coming. And that's what I'm out to prove to them that hey we can do this and then would you give us the stage.

So that is the standpoint that I'm looking at at this from I love the fact that focus has shifted from speculation. When Becca was talking she mentioned speculation and I love what is happening. Look at what I did with web 3 bridge. He saw a vision that he could raise developers. I didn't see a vision that I can raise developers because I'm not one myself but I saw a vision that I could train people and so the kind of community I started was the one to teach and train people.

What was my goal? It was very simple. 5 years on board the next generation of leaders, professionals and um and uh uh innovators in this space. So it was just a laser focus professionals who will be service providers and innovators. Now the other guy who can do the development came on board to do it.

Right now we have ecosystems like Lisk in Africa. We have Solana in Africa. We have based in Africa you know. So what is the focus now? building because until we build we are not going to have a stake in the global system you know and the truth is this is 16 years since the activation of blockchain technology and it's going to keep moving faster than you can imagine and if we don't do things about it early then we will lose out of the game eventually in the end and this will all be for what for nothing you know she talked about um um policy engagement right engaging with regulator us.

These are things that we don't understand. When I was giving my um session here earlier today, I talked about peace, you know. So sometimes some people don't understand what it is that is happening. I happen to be on the know of the inner workings of this thing and we cannot all be building a solution. There are people who have to be responsive.

It's all part of the building. There are people who have to be responsible for building communities. There are people who have to be responsible for building products. There are people who have to be responsible for leading products that are built to turn them into businesses. There are people who have to be the connection like he is at Hatchent who is the African VC that we have.

We don't have an African blockchain VC fund. We don't have any. And it's not because we can't. We can actually put monies together. If we have 20 people who put $50,000 together, that is $1 million.

We can use $1 million to kickstart.

When some projects are here, how much were they giving to African project? Oh, they invested is 50K, 100K. None of them really came and give any African project 5 million or $10 million or even 1 million is like a big thing for them to give to Africa. You know there in currently in Nigeria there are so many bills has passed and those bills are affecting our industry and we do not know because we are not part of the process you know so there's a whole lot to that spectrum but my real focus right now is how can African founders come together you know to put just one project we just need one to succeed how can we come together to set up just one blockchain formed to invest in ourself before we start seeking for help from outside and expecting that oh there is a bias against Africa what do you think they own the money they make the decisions so you cannot be having an expectation of what should come to you from what belongs to somebody else if you don't like it then do your own thing and the door is open that's what I love about blockchain it is an open opportunity for everyone you So it's wow.

That was great. Please a round of applause. Um yeah, I would have loved to get a question from the audience. That would just be the final stuff. Um is there any question at all?

Anybody? Anybody? I don't think there's anybody. All right. Please can you quickly just come forward just a minute?

So um I think everybody can hear. Hi everyone. My question is as a first time founder or someone trying to get into startup ecos what are some compliance and or regulations that out for being that when you are building or when you're coming from a perspective all you worry about is oh I'm getting my user data I'm saving domain what are some things cuz uh I am a builder myself the major thing I focus on is um saving my user data properly that is that is all I know about I know GDPR and the rest But what are some things we are not seeing that are already happening behind the scene that we should take into consideration that kind of thing?

Okay. Um, sorry, just leave the mic with her for some minutes. Thank you. What kind of product are you building?

Okay. Um, I'm like sum it up. a way to get um some of the crypto earnings for freelancers like myself. A way to kind of validate it that there that all of those earning matters towards things like um loan application, visa application or even a credit kind of

so it means that your product has to do with finances.

Yes. Yes.

Good. first basic across the world everywhere data protection first.

Yes.

Right. Then after data protection the next universal compliance is data security.

Okay.

You know data protection is how you violate users data that is entrusted to you.

Yes. your data security. You might not see it as your problem, but it is your responsibility because if there is a breach in your data from an outside source, you would answer for it. So, it's your responsibility to secure your users data. This one is not even you violating data privacy.

Okay.

Right. Yeah.

So, if somebody hacks into your system and steals users data, you answer for it.

Oh, yes. Yes.

You are supposed to do that. Then now that you are moving money, one of the primary concerns of regulators is KYC and KYB, right? Know your customer, know your business. Then you start talking about AML at money laundering. They don't want your platform to be used for London money.

You talk about CFT, that's counter financing of terrorism. You don't want your platform to be used for that. Do you get? So you are now going to have to set up the infrastructures that will prevent all of these things. Now because money is passing through your platform then you have an obligation to reporting.

Yes. You get? So now you have to do that right and then if you are in a jurisdiction where the SEC is also looking into what you're doing is it investment is it security or are you even offering financial services CBN you will look at you the central bank or whatever the central bank of that country you are going to be needing some form of licensing from them. If you are you know saying to be offering financial services then if your um financial service looks like an investment or a platform or security you have to get that from SE and then another thing also is are you qualified to offer such services. So that also comes in.

So compliance even goes beyond infrastructure. It also goes with your team, with your personnel, the people on your team, the people because you may not have the qualification. For example, if I set up a company that today the company wants to start offering stocks and I am not a certified stock broker, I need to have a certified stock broker on my team to be able to offer that service because he is qualified and licensed to do that. Then to save yourself all of these things, your business is to build. Get a legal person and a compliance officer and you're good.

Please your hands together. Thank you very much. I believe the question has been answered. If you have any further questions, you can meet the speakers at the end of the session. Thank you um for your time.

Thank you so much.