The Singapore FinTech Association (SFA) Patron and Strategic Advisory Council, formed in July 2024, serve as a critical guiding body, providing expert insights and strategic direction to support the continued growth and success of the FinTech ecosystem in Singapore. Comprising highly respected leaders from diverse sectors, including finance, technology, and policymaking, the Patron and Council play a pivotal role in shaping SFA’s initiatives. By offering their expertise, the Patron and members of the Council help ensure that the Association remains at the forefront of innovation, fostering collaboration and development within the FinTech industry, both locally and internationally.
Author: admin
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How a Lagos fintech startup raised its first $1M
A typical roadmap to raising this first significant capital involves the following steps:
1. The Pre-Requisites
- Build an MVP: Develop a functional prototype that solves a specific pain point (e.g., SME lending, cross-border payments, or merchant gateways).
- Traction & Numbers: Gather initial data proving product-market fit. Investors look for metrics like transaction volume, active users, and low customer churn.
- Incorporation & Compliance: Ensure the business is legally registered (e.g., via the Corporate Affairs Commission in Nigeria) and that early-stage legal and regulatory requirements are met.
2. The Fundraising Strategy
- Accelerator Backing: Programs like Y Combinator and Techstars act as a launchpad. They provide early capital, mentorship, and direct access to a global network of investors.
- Network & Warm Introductions: African fintech founders generally leverage warm introductions from existing founders, advisors, or their accelerator networks to pitch to angel investors and micro-VCs.
3. Investor Targeting
- Venture Capital (VC): Pitching to early-stage VCs that focus on African or emerging markets (e.g., Microtraction, Future Africa, Ventures Platform, or international funds).
- Angel Investors: Raising smaller tickets (e.g., $10k to $50k each) from angel investors who are operators or founders themselves to complete the round.
4. Structuring the Round
- Convertibles vs. Priced Equity: Startups often raise their first $1 million using Simple Agreements for Future Equity (SAFEs) or convertible notes. This defers valuing the company until a future, larger priced round.