By Raising capital is not just about having a great idea — it’s about being ready when the right investor shows up.
I recently came across this presentation by Mbwana Alliy of Savannah Fund — one of the most active early-stage VC funds in Sub-Saharan Africa — delivered at Bongo Hive in Zambia. It lays out a practical, no-nonsense checklist for startup founders across the continent who are serious about attracting investment. I’ve embedded it below, but I also want to unpack each point because the details matter.
Why This Matters for African Founders
Savannah Fund had made 21 investments across 6 countries by 2015, deploying over $13.5M across sectors from agri-tech to fintech to education. That track record gives Mbwana’s framework real credibility — this isn’t theoretical advice, it’s pattern-recognition from actually writing cheques on the continent. The 10-step checklist below is what separates startups that close rounds from those that stay stuck in “almost.”
The 10-Step Investor Readiness Checklist
1. Product-Market Fit & Traction
Before you approach any investor, you need proof that real people are using your product and paying for it (or at least engaging meaningfully with it). This means early transaction behaviour, a clear grasp of your unit economics, and evidence that you’ve already learned from your mistakes through trial and error. Investors aren’t buying your vision alone — they’re buying evidence that the vision is grounded in reality.
The question to answer: Can you show a chart or a number that proves people want what you’ve built?
2. Team Commitment
This is where many African startups quietly unravel. Common failure points include the departure of a technical co-founder, a gap in operational leadership (COO/CFO), or a weak sales function. Beyond roles, investors scrutinise whether the team has worked together long enough to have built trust — and whether everyone is fully committed or treating the startup as a side project.
Equity structure matters here too. If your team doesn’t have proper vesting schedules and option pools in place, that’s a red flag for any serious investor.
The question to answer: Is your team all-in, and do the incentives reflect that?
3. Investor Validation & Syndicate Size
Having a credible lead investor — someone with a recognisable name and a track record — makes it significantly easier to bring others along. Accelerator participation can also help, both for the network and for the signal it sends. A word of caution though: the larger the syndicate you’re trying to build, the longer the process takes. Six months or more is not unusual when multiple investors need to align.
The question to answer: Who is already at the table, and what does that say about your deal?
4. Legal Jurisdiction vs. Investor Origin
This is one of the most underappreciated decisions a founder can make. The country where your startup is legally domiciled affects what investors can participate, what terms they can offer, and how smoothly follow-on funding flows. Common domicile choices for African startups include Mauritius, South Africa, US Delaware, and Singapore — each with different implications depending on where your investors are based.
The slide puts it plainly: get good, trustworthy lawyers. This is not the place to cut costs.
The question to answer: Does your legal structure make it easy or hard for the investors you want to attract?
5. Social Enterprise vs. High-Growth VC
Not all capital is the same, and not all startups should be raising VC money. Impact investors and venture capitalists have fundamentally different expectations around returns, timelines, and growth trajectories. If you’re pitching a VC fund, they need to see a path to a large market — this is not the room for small, incremental thinking.
Sectors particularly interesting to impact-oriented investors in Africa include fintech for the unbanked, agri-tech, education, energy access, and solutions targeting the base of the pyramid. Know which category you’re in before you walk in the door.
The question to answer: Are you pitching the right type of capital for what your startup actually is?
6. Balance of Terms — Price vs. Control
Understanding your term sheet is non-negotiable. Two variables dominate: price (your valuation and what return you’re offering early investors) and control (board seats, change of control provisions, and strategic direction). African founders sometimes face what’s called an “Africa discount” on valuations — though in some sectors there’s now a premium. Either way, know your comparables and understand what you’re giving up.
The question to answer: Do you understand the terms you’re agreeing to, and are they balanced for both sides?
7. Compelling Story & Narrative
Investors are human. A compelling story — one that explains why you, why now, and why this market — does more work than a perfectly formatted financial model. What does the press say about you? How does the investor fit into the arc of where your company is going? Don’t get so lost in the mechanics of your pitch that you forget to make someone feel why this matters.
The question to answer: If an investor had to describe your startup at a dinner party, what would they say?
8. Go-to-Investor Strategy
Fundraising has real costs — in time, travel, and attention. You need a deliberate strategy: which investors are you targeting, in what order, and why? Online platforms like AngelList can extend your reach. Investment advisors like Open Capital Advisors can help bridge gaps. And critically, you need a realistic timeline and a sense of how much of your own bandwidth this process will consume.
The question to answer: Do you have a structured plan for who you’re approaching and how?
9. Know Your Investor (KYI) Diligence
Founders spend a lot of energy passing investor due diligence. Fewer flip the table and do diligence on their investors. But you should. How experienced are they? What sectors do they know? Do they understand your market and your country? How have they actually supported portfolio companies — not just with capital, but with connections, advice, and problem-solving? Who specifically will be involved on your board, and who has sign-off authority?
The question to answer: Is this investor going to help you win, or just watch?
10. Momentum & Close
Deals die in silence. If you’re not consistently building and communicating momentum — new customers, new partnerships, press coverage, product milestones — investors’ attention will drift to the next opportunity in their inbox. Leverage positive macro news about your market where you can. And be realistic: if a deal is dragging past a reasonable timeline, that’s a signal worth paying attention to.
The question to answer: What news can you share every 2–4 weeks that keeps investors leaning forward?
What About the Business Plan?
The presentation ends with a deliberately provocative slide: “What about the Business Plan????” — four question marks included. The implicit answer is that the business plan is downstream of everything above. If you can’t demonstrate traction, team, market insight, and narrative, a polished 40-page document won’t save you. The checklist is the foundation. The documents follow from it.
Final Thought
African startup ecosystems have matured considerably since this presentation was made — more local capital, more experienced founders, more infrastructure. But the fundamentals Mbwana outlines haven’t changed. If anything, a more competitive landscape makes each of these 10 steps more important, not less.
Go through this list honestly. If you can’t answer the core question under each step with confidence, that’s where to focus before you send your next pitch.
