Financial Technology (Fintech) experts have urged tech start-up founders to build sustainable competitive advantages, ensure impact-driven traction and visibility, prioritise regulatory compliance and secure strong legal support to improve their chances of attracting investment and scaling their businesses, especially as fundraising gets tougher.

At the fourth edition of ‘Founders Meet and Chat’, organised by BlackCrest in Lagos, speakers advised tech entrepreneurs to demonstrate real user traction and provide credible evidence of their business performance to improve their chances of securing investors.

Managing Partner of BlackCrest, Osita James, said investors are increasingly interested in how founders plan to remain competitive and resilient, even when their initial business strategies face challenges.

James emphasised that founders must develop strategies that protect their businesses from competition and ensure long-term relevance in the market.

He explained that such strategies could include developing an ecosystem of complementary products rather than relying on a single offering or targeting customers who would continue using the product over an extended period rather than making one-off purchases.

According to him, entrepreneurs should spend considerable time identifying factors that would keep their businesses resilient over time.

“Investors want to know how you are building the competitive advantage that will allow you to remain resilient in the market, even if your current strategy is no longer working,” he said.

He also stressed the importance of obtaining sound legal advice before entering into business transactions, warning that promising investment opportunities could collapse if founders fail to meet regulatory requirements.

James noted that the absence of the required licences or strategic partnerships for startups operating in highly regulated sectors such as finance could discourage investors regardless of the quality of the business proposal.

Speaking during a panel session on what startups need to attract investors, Co-founder of Midddleman, Omolara Sanni, advised entrepreneurs to focus on demonstrating tangible results and market traction, noting that investors are primarily interested in businesses with proven demand.

Sanni also urged founders to prioritise acquiring customers and developing products that people are willing to pay for, while also exploring alternative funding sources such as grants, which do not dilute ownership or place undue pressure on businesses.

According to her, securing investment has become increasingly challenging, particularly for startups operating in emerging sectors.

The Chief Operating Officer and Co-founder of Winich Farms, Winner Attai, said successful fundraising extends beyond networking and documentation, stressing that founders must present a compelling business story to potential investors.

Attai advised entrepreneurs to clearly define their fundraising strategy by identifying the type of investors they seek, whether impact-driven financiers, traction-focused backers or those primarily interested in financial returns and growth metrics.

He emphasised that raising capital is a gradual process that requires structure, adding that founders should view it as a long-term journey.