Startups

Risky business: how to de-risk your fintech startup before it’s too late

Running a Risk Diagnostic can help mitigate risk

Running a Risk Diagnostic can help mitigate risk

Co-written by Elizabeth Davidson

Early identification of key risks can help fintech startups invest in the business support they need early on before a risk takes down the business. These risks can scare off investors, who want to ensure that entrepreneurs understand the key challenges they face. Instead of waiting for entrepreneurs to identify key risks, early stage investors can work with startups to tackle these risks before or in conjunction with their investment.

Catalyst Fund has taken just this approach. By working with our entrepreneurs to identify risks, we can tailor technical assistance to solve these risks so that investors are more confident in the future success of the business.

Our Risk Framework as a Focusing Device

Our Risk Framework as a Focusing Device

Taking an honest look at their own key risks can be difficult for entrepreneurs, who may be too deep in the weeds to step back and look at the bigger picture. This is why the Catalyst Fund developed a risk diagnostic to help startup leaders get a better grasp on their challenges, and understand those within or outside of their control. The tool offers a checklist of possible mitigation strategies for the entrepreneur. Read more here.

Timing isn’t quite right for SaaS startups in Africa

Source: Alrami.info

Source: Alrami.info

Let me tell you how I failed to build a scalable SaaS (Software-as-a-Service) startup in Africa.

Remember the hockey-stick growth chart? This is what an entrepreneur signs up for and what investors want to see.

SaaS-Startups-Africa-Entrepreneurs.png

But let’s face it, hockey-sticks are not part of the reality in Africa… not yet. So why are software-as-a-service startups not taking off? Three reasons:

  1. 1. Businesses are competing for the investor dollar, not for superior tech
  2. 2. Economies of scale can only work at scale
  3. 3. Scaling across the continent is harder than it sounds

Read more here