National Economy
Wednesday, July 30, 2025
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy
No Result
View All Result
Read News
National Economy
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy
No Result
View All Result
National Economy
No Result
View All Result
Home Commentary Analyst

Recreating Experience Of Fintech Start-ups

by Rarzack Olaegbe
6 months ago
in Analyst
Reading Time: 2 mins read
Fintech
Share on FacebookShare on TwitterShare on Telegram

A lack of funds or a pool of funds does not guarantee the success of a start-up. We have seen that repeatedly. What is the guarantee? I will let that question pass. However, while daily living is a challenge. Running a business daily in a challenging environment and working out how to live decently is a Herculean task. Add to the mix, the task of managing the shenanigans of employees, and massaging the egos of superstar CEOs, it becomes a constipated patient needing an enema.
His body is heavy. His mood is stuffy. His system is filthy. Life becomes a bore. Then, survival is not an option. It is the only thing. He has lost his oomph. His sheen is dull. He is in a race to turn the ship around so that it will not go aground. He was in a battle to save the world, the world of his start-up business. Did he succeed?

On The One Hand
Niyi Adeosun, founder and CEO of PhoonePOS, explained that value has business. “There is the business of valuation. Businesses ensure sustainability by delivering value at a profit and rewarding shareholders by paying dividends.” He believes shareholders prefer businesses that have not shown a clear path to profitability, but command even “higher valuations” based on other metrics. These “other” metrics would include but are not limited to the following: Subscribers’ base. Growth rate.
While explaining the series of fundraising, he noted that each series usually closes at valuations of multiples of the previous valuations. “They seem to behave like Ponzi schemes. The unlucky latecomers hold the can. The early investors get the cash. After the valuation plummets, the musical chair goes on.” Then, another “promising” start-up comes up. Curiously, he pointed out, these businesses survive solely on fundraising. Therefore, when the funding dries, the oxygen level drops. Then the businesses die. Then the undertaker gets into a frenzy. Then the story goes out. And life goes on.

On The Other Hand
I have written about these examples in the past. Well, Niyi alluded to some Fintech start-ups that have experienced a similar fate in Africa. He said Africa has become the hotbed of the gold rush to invest in Fintech. As we have seen this year and in the past, funding is not the only challenge in this high-skill game. Talent retention. That is a big challenge. Because of this and other challenges, at least five African tech start-ups closed shop in the year 2023. Wabi. Hytch. Zumi. Paxful. Lazerpay. Zaazu. It is a recurring decimal. They started-up. They shut down. The beat goes on. The sun shines.

In The Long Term
Let me shed some light. Start-up Failure Rate Statistics have shown that 10 per cent of start-ups will fail in the first year. The percentage of construction businesses that fail within the first year is 20 per cent. The Fintech start-up failure rate for venture-backed businesses is 75 per cent. About 26 per cent of European founders rely on venture capital. What does this mean for Fintech?

You May Like

Could We Yank Mobile Phone Out Of Digital Payments?

Is Data The New Oil In Africa?

In The Short Term
It means you need funds, a talent pool, and other essentials to get your start-up to the Promised Land.
Start-ups die in Europe, America, and Africa. In summary, a day-old baby dies everywhere. Even in places with the finest paediatricians. Why?
That is how life works. Tactical elimination. Funds, talent or not.

 

Tags: FINTECH
ShareTweetShare
Previous Post

Zamfara Civil Society Group Criticizes Gov. Lawal Over Insecurity Claims

Next Post

Dennis Joins Blackburn Rovers On Loan

ANOTHER GOOD READ

Could We Yank Mobile Phone Out Of Digital Payments?
Analyst

Could We Yank Mobile Phone Out Of Digital Payments?

3 months ago
Is Data The New Oil In Africa?
Analyst

Is Data The New Oil In Africa?

3 months ago
The Crucial Role Of Small Businesses
Analyst

The Crucial Role Of Small Businesses

4 months ago
As Nigeria’s Oil Sector Reclaims Trust
Analyst

As Nigeria’s Oil Sector Reclaims Trust

4 months ago
What Does Incumbent Firm Gets When Fintech Start-ups Lose?
Analyst

Thriving Tech, Finance Sector And Yahooze!

5 months ago
What Does Incumbent Firm Gets When Fintech Start-ups Lose?
Analyst

What Does Incumbent Firm Gets When Fintech Start-ups Lose?

5 months ago
Next Post
Dennis Joins Blackburn Rovers On Loan

Dennis Joins Blackburn Rovers On Loan

Most Recent

Coca-Cola To Sell Chivita|Hollandia To UAC In Major Industry Shake-Up

Coca-Cola To Sell Chivita|Hollandia To UAC In Major Industry Shake-Up

July 30, 2025
Stakeholders Warn Against Weakening FoI Act

Stakeholders Warn Against Weakening FoI Act

July 29, 2025
Impact Of Fake Colleagues In A Workplace

Impact Of Fake Colleagues In A Workplace

July 28, 2025
NYG: Weightlifting Federation Begins Implementation Of New Bodyweight Categories

NYG: Weightlifting Federation Begins Implementation Of New Bodyweight Categories

July 28, 2025
Women’s Basketball Premier League: First Bank Makes Strong Start

Women’s Basketball Premier League: First Bank Makes Strong Start

July 28, 2025
WAFCON 2024: Senate Celebrates Super Falcons

WAFCON 2024: Senate Celebrates Super Falcons

July 28, 2025
Wakama Unveils D’Tigress’ Roster For 2025 AfroBasket Championship

Wakama Unveils D’Tigress’ Roster For 2025 AfroBasket Championship

July 28, 2025
‘Legal Backing Needed For Gratuity Reintroduction Under CPS’

‘Legal Backing Needed For Gratuity Reintroduction Under CPS’

July 28, 2025
Advertise with us

© 2024 | National Economy

No Result
View All Result
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy

© 2024 | National Economy