Dear startup founders and investors, If you are navigating the challenging waters of the African tech startup ecosystem, “Investment Worthy Startup by Tomi Davis” is a must-read book for you. This comprehensive guide is a perfect read that offers valuable insights into the unique hurdles African startups face and provides a roadmap for overcoming them.
Each week, we will unveil a summary of a new section of the book, starting with the introduction, followed by four further reviews. Stay tuned for the upcoming weeks as we uncover each component of the POEM Framework
The book begins by addressing the significant funding gap that plagues African tech startups. It highlights the common challenges faced by startups worldwide, such as poor market research, incorrect business models, and poor execution. However, the African context presents additional obstacles, including a lack of technology infrastructure, sporadic government support, and a talent drain to the diaspora.
To secure the necessary capital to thrive, African startup founders must leverage available ecosystem support. The book emphasizes the need for a robust ecosystem that supports startups through every stage of development, from pre-seed funding to Series A and beyond.
One of the book’s strengths is its clear definition of a startup, differentiating it from traditional small businesses. Startups are expected to experience rapid growth, access funding through various channels like angel investors and venture capital, and have an exit strategy in place to provide returns to their investors.
The POEM Framework
The POEM Framework lays out a clear roadmap for the startup journey, beginning with pre-seed funding from founders, family, friends, and angel investors. It then delves into seed-stage funding, where startups focus on establishing a customer base and tracking cash flow.
As startups grow, they face new challenges in the growth stage, such as managing increased sales and customers. At this point, they may seek funding from angel syndicates, venture capital firms, grants, or even banks.
The ultimate goal is scale-up funding, where startups expand into new markets and gain a larger market share. Series A funding is crucial for startups seeking to achieve this growth, attracting investments in the millions of dollars.
The POEM Framework is introduced as a powerful tool for measuring a startup’s progress objectively. The five elements of the framework – Vision, Proposition, Organisation, Economics, and Milestones – help founders and investors alike understand the startup’s journey and its potential for success.
“Investment Worthy Startup” provides a compelling narrative that guides readers through the process of building and scaling a successful startup venture in Africa. The book’s practical approach and valuable insights will undoubtedly be valuable to anyone in the startup community.
However, the review only scratches the surface of what this book has to offer. To gain deeper insights and actionable advice for your startup, stay tuned for more sections of the book review. For a comprehensive understanding of the POEM Framework and its application, I recommend getting your hands on a copy of this invaluable resource.
So, if you’re a startup founder or investor seeking success in the African tech startup landscape, don’t miss out on the invaluable insights offered by Tomi Davies in “Investment Worthy Startup.” Get your copy now and embark on a journey toward entrepreneurial success!
