Chief Operating Officer, Kora, a financial technology company, Ayodeji Osisami, has highlighted the importance of technology startups managing their initial funds effectively, in order to remain competitive.

Speaking at the GenZ Techies conference at Lagos State University, Osisami said raising and managing initial capital has always been a challenge, particularly for GenZs who are beginners in the startup space. He advised entrepreneurs to start with personal funds, or raise money from friends and family.

Speaking on the theme: ‘Getting and Managing Your First Fundraise,’ he said: “There are three ways to raise funds. The first is personal fund. Try and start a profitable business, then you can work and save some money and not to start your journey in debt. The second is using family and friends to raise funds. Those are the timeless ways of doing this while the third way of course, is incubators, joining the likes of Techstars, Y Combinators among others.”

With regards to managing their first funds when it eventually comes, he urged young techies to stick to the purpose of the business, maintain discipline and constitute their boards on time.

“The first thing is that you must stick to the business purpose. You cannot forget about profitability, cash flow. Nowadays, with all the flashy things, people get carried away with the money raised, so you need to stick to those tiny principles that guide your business. Also, discipline is key. To be able to stick to those principles, it takes discipline. You need to stick to the course, ensure you are profitable, don’t just grow your over head like that.

“The third is that you must be accountable to somebody. Get your board on time, a senior colleague that you are reporting to because once you don’t have accountability, there is a tendency to run down the business.”

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