Building a Network of Funding Sources | ECA Hybrid Workshop

A blogpost of Triumph Ogeh , Emerging Communities Africa

In the past years, there has been a growing focus on developing new funding models and leveraging existing networks to support innovative projects and startups in Africa. One of the main drivers of this trend has been the rise of digital innovation hubs, incubators, and accelerators in Africa, which have helped to connect entrepreneurs and innovators with resources and networks. Additionally, several new funding initiatives and programs have been launched recently to support the growth of small businesses and startups in Africa.

Despite these efforts, many entrepreneurs and innovators need help accessing funding and other resources to support their projects. The workshop "Building and Using a Network of Funding Sources'' by Emerging Communities Africa (ECA) is part of the AfriConEU Networking Academy. Its goal is to help attendees gain helpful information on finding funding sources and creating long-lasting partnerships for innovative projects.

The workshop was held on January 26th, 2023, at The Nest Hub in Yaba, Lagos, Nigeria, and was also available online through Zoom. The event brought together a diverse group of people from academia, business, and government interested in learning about accessing and using funding sources for innovative projects that can promote African economic growth. The workshop began with a presentation by Bankole Oloruntoba, CEO of Nigeria Climate Innovation Center (NCIC), on the concept of an innovation lifecycle. He explained how understanding the different stages of an innovation's development can help entrepreneurs identify the best funding sources for their projects. Additionally, He highlighted the difference in accessing private sector funding, government funding, and funds from foreign sources. He later went on to clarify that accelerator and incubation differ, and a startup will need pre-incubation at its ideation phase to produce a prototype. After that, it needs incubation to gain market entry and will only require acceleration when it needs growth and scaling.

Following Bankole's presentation, Ireayomide Oladunjoye, Immediate past Head of Lagos Innovates (Lagos State Employment Trust Fund), spoke on the various funding sources available to entrepreneurs, including government grants and venture funds capital (VC) and crowdfunding. She stressed that bootstrapping or funding from friends and family is advisable at an early stage, and a business should only consider VCs when they have started making revenue.

The workshop then featured a panel session with Amarachi Nwachukwu, co-founder of MendHq; Mike Rosanje, CEO of My Cash Buddy; ?Ibrahim Ajala, co-founder of VS Creatives; and Joba Oloba, co-founder of Nest Innovation Technology Park. The panelists shared each of their company's funding stories and offered valuable insights into the challenges and opportunities of securing funding for innovative projects. One of the panelists mentioned that more than funding, the environment also played a vital role in determining the success of their organization.

Next, Joba Oloba, Co-founder of The Nest Innovation Technology Park, discussed the concept of an innovation ecosystem and how to map it. He emphasized the importance of understanding the different players and resources in a local innovation ecosystem and how they can be leveraged to support the growth of innovative projects. He focused on academia as a driver of research into current problems and innovative solutions and how academia and DIHs should collaborate on upskilling programs.

To wrap up the event, attendees participated in a group activity session where they worked together to propose a sustainable funding/partnership framework for innovative projects. The goal of the activity was to explore and maximize opportunities that could bring economic growth to target markets. Group A devised a plan to scale the export of high-quality leather from Aba, a city in Abia, Nigeria, using technology. At the same time, Group B developed a partnership strategy to bridge the institution and industry mismatch using digital innovation hubs as enablers.

At the workshop's close, participants could describe funding sources within their innovation ecosystem, match financing sources to project needs, explain the role of DIHs as reference points, and understand best practices for maximizing funding opportunities and collaboration.