There was the almighty IBM and the Likes before Microsoft, There was www.Hi5.com, www.blackplant.com, www.myspace.com, i have accounts in all these sites before Facebook cameup, you won’t believe hi5.com still send me mail, It’s all about Value Proposition, calve out a nice niche and make it the product you are selling.
All the Venture capitalist collect back at least 20-30% stakes in the company, 35% of the fund as mentoring fee, admin fee and co, it’s all about Drama, Media Hype and what you want to read.
Take for example, 500Startup is about the largest VC in the world, see what they charge, so you can imagine what the Nigerian counterparts will be charging.
Execution is everything. With our 4-month seed program you’ll get access to awesome mentorship, hands-on sessions with startup experts, and a great office space where you’ll work with other smart, talented founders from around the world. We invest $150k in exchange for 6%. We charge a $37.5k fee for participation in the 500 Seed Program. We run our seed program in Mountain View, San Francisco and Mexico City. Think you’re ready “
Don’t believe what you read/see the excerpt below from thestarta sums it all.
‘’ What you read in the press about fantastic fundraising and entrepreneurs is storytelling: the press writes what people want to read, what people will share, stories that sell. And we love reading such stories. So they keep feeding them to us. It’s an endless loop. Do not believe it, do not benchmark yourself with it, do not compare yourself with them. You’re both playing two different games and you’re in this for the long haul. ‘’
Bootstrapping is the way out, I recommend www.startupsecrets.com its a good place to watch videos on startup incubation from Havard University iLab.
Written by Olushola Ogunniyi
Shola is technology enthusiast since the days of Windows 95. With special affection for technology in business for motivating entrepreneurs and intrapreneurs to grow their Startup. He believes SME’s is the only solution to a sustainable economy. @sholahacom