In 2016, Iyinoluwa Aboyeji and Olugbenga Agboola founded Flutterwave. Agboola’s background includes work as a PayPal programmer and a Google invention manager. He has led an African company to the status of “unicorn” in record time.

This success could encourage further investors to visit Africa in 2021 when a growing tide of technological capital presents a promising opportunity. Some startups that have helped throw open the floodgates this year include Tyme Bank, Adamo, Diool, and Stitch.

The investment community’s contributions to Flutterwave and its ecosystem are a significant factor in the company’s status as a unicorn. Aboyeji lauded Olugbenga Agboola and Flutterwave, calling them the “angels that gave life to a new enterprise.”

It would be best if you remembered this. To get off the ground in 2016, Flutterwave needed investment from people and (ultimately) companies who believed in the company’s fundamental principles and objectives.

Agboola’s own words seem to suggest as much. On the company blog this week. He wrote, “If we hadn’t gotten our Series A capital the time we did, which helped us scale, surely wouldn’t be here.”

Many different organizations contributed to Flutterwave’s funding. Multinational corporations and international groups have been critical in bolstering fast-growing startups.

Twenty countries and over 290,000 retailers all use Flutterwave, yet nobody can claim any creative input towards the design of the products. We can gauge the need for new investor communities in Africa by looking at the money put in at various points in a startup’s life cycle.

Angels and Accelerators

Aaron Harris, a partner at Y Combinator, said at the time, “Flutterwave is revolutionizing how money moves for an entire continent.”

In addition to the $125,000 in seed funding, Y Combinator (YC) offers its applicant companies access to a network of thriving business minds and expert evaluation of their product concepts.

Once a startup has finished Y Combinator and presented at demo day, it is widely acknowledged as having achieved success. That’s encouraging news for financiers of all budgets.

Friends of Zachariah George’s from Stanford and Y Combinator connected him to the Flutterwave team after he left Barclays as an investment banker.

He decided to invest in the company because its payment processing technology will help small business owners in Africa save time and money.

George manages the Africa headquarters of Startup Bootcamp. This YC-like accelerator has invested €727 million in 950 startups, and he has personally invested in more than 70 African startups in their early stages.

He believes that having the backing of YC and other organizations like it is a huge morale booster for businesses.

Could Rapid Expansion Attract Investors from Abroad?

My view is that perspective is everything. Banks and insurers will be more receptive to cooperating with you if your cap table includes global investors who have funded other fintech. George describes it as “a bonus, but a big one.”

Angel investors can fund a company in a few short months after it has been founded. Volunteers may have good intentions, but they may be too distracted by their own lives to make meaningful contributions to the company’s day-to-day operations or create new products.

This role is frequently filled in the startup process by accelerator programs. Flutterwave could receive direct help from large technology firms interested in expanding into Africa.

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