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6 ways on how to raise capital for your start up business

Gudtalent Chrisent




6 Effective Options on how to raise capital for your start up business

If you read my post how to avoid spending too much in your business, then you will know that they is a need to know there is a difference between business money and personal money. There’s never been a better time to be a savvy entrepreneur. One thing you must know is that you must have a capital before you talk about stating up any business. Neither you nor any entrepreneur can be successful without first raising enough capital to turn your business idea into reality.

Unless you happen to be one of the few entrepreneurs that already has enough cash to self-sufficiently support a new business startup, you’re possibly going to need to find a way to raise some money for your startup capital. Here are our six preferred suggestions to you.

Six Ways on how to Raise Capital for Your Start up business

(1) Family and friends.

When seeking to secure funding, most entrepreneurs start with their friends and family. If you have good relationships, this is a good idea, as most of your loved ones will want to see you succeed. However, do not forget that anything that involves money can be rather problematic if you aren’t careful. Do not forget to put everything down in paper while borrowing money from your family and friends who are financially capable of helping you with your startup

(2) Bank financing.

Once you are done with your friends and family, the bank is the second most popular place to help you with the startup capital. Many local banks will happily grant small business loans to you, as long as you come with sufficient information and a detailed business plan. However, you may be asked to use some other form of equity (such as your home or any other landed property) to get your loan approved. Just make sure you understand what you’re risking when signing a small business loan from your bank.

NOTE: Make sure you know the value of what you are risking to avoiding the problem of selling your home or giving you a notice to quit from your home as this have sent many to their grave after developing HBP just because they cannot stand the sock of losing a business.

(3) Angel investing.

Angel investors are successful entrepreneur who have enough cash in their own portfolio to invest in other businesses. An excellent Example of this is the popular show Shark Tank. The major benefit here is that along with the cash, angel investors offer ongoing guidance and advice.

ALSO READ: What you must do in campus to make money

(4) Venture capital.

These are groups of savvy investors who contribute their money together to invest in early stage businesses with promising futures. In return for an investment, they typically ask for equity and/or debt financing. So you can get your friends who shares the same vision with you to contribute money and run a business for profit.

(5) Equity crowdfunding.

One of the newest modes for raising startup capital is what’s known as crowdfunding. There are typically two types of crowdfunding, and we’ll discuss the equity model first. Equity crowdfunding is when you use a website to raise capital from anyone who’s interested in your startup. In return, you offer a percentage of capital for each dollar invested. In most cases, you set a minimum amount you’re willing to accept and the majority of investors are business men, women, and other professionals looking to take a chance and diversify their portfolios. A typical example of Equity crowdfunding is GT GROUP.

ALSO READ: How to make money online.

(6) Rewards-based crowdfunding.

This form of crowdfunding is pretty much identical to equity-based crowdfunding, only instead of offering equity in return for an investment, you offer a tangible reward. This could be a sample product, tour of the facility, or a complimentary membership. Rewards-based funding tends to attract much smaller investments and targets average people who are more interested in the product or service than a long-term return. A typical example of Reward-based crowdfunding is the GNLD.

Before you comment and share this information, Also see reasons why being broke will make you a better entrepreneur.



I'm that Lazy and controversial entrepreneur, Popularly known for my Quora Secrets. Founder and CEO of SumoTrust, Motute and CrowdFacture. Read about my Bio at personal website. Connect with me on Facebook, Twitter, Google, Linkedin and Instagram.


How To Bootstrap A Startup If You Don’t Have Money




There is a word of wisdom that says; “you use what you have to get what you want” but what if you have nothing, what can you do? Then you improvise! That is what I mean here; steps to bootstrap a startup if you don’t have money to finance it. All that we need has been provided for us, saith the Lord of hosts. What these imply is that all we need to do is to look for ways for ourselves by improvising. Improvisation simply means using whatever can be found to create (or improve) something.

Starting up a business as an entrepreneur requires capital. No matter how small the business might be, startup capital is very important to commence and sustain the business for the mean time before making profit. In our country today, where there are fewer white collar jobs and the government keeps advising youths to get a trade and learn 1 or 2 skills, a lot of young aspiring entrepreneurs have a pool of business idea in their head but executing it is a huge problem due to lack of startup. What then do we do? How do we go about it? As you and I know, man must survive, and begging or steal is completely out of the question in the pursuit of survival.

The answer to the above questions will be answered in this article.

How To Bootstrap A Startup If You Don’t Have Money

How To Bootstrap A Startup If You Don’t Have Money

To solve the problem of having a great and brilliant idea upstairs but unable to execute it, one has to improve or bootstrap. Bootstrapping means supporting oneself or achieving something without any or much external help or assistance. I spoke with an aspiring entrepreneur recently and he explained to me how difficult it is for startups to get bank loans, government grants, and investors to support their business. Therefore, one must source for all necessary support by him/herself. This as you know could be very difficult but it is definitely worth it at the end. It takes a lot of hard work, discipline, and dedication to succeed in business these days but if you can bootstrap, and keep pushing forward, you will be able to elevate your business idea.

In this article, I discuss several ways you to bootstrap your startup when you don’t have money (seed capital) to finance and/or push it to the next level.

11 Ways To Bootstrap Your Startup When You Don’t Have Money (Seed Capital) To Finance It

(1) Get A Co-Founder

This can also be called a business partner. This is someone that has the same interest and skills with you and who can support your business dreams. As the common parlance says “two heads are better than one”. Share your business ideas with this person (your prospective or substantive co-founder) and both of you can contribute money to embark on the business. The person can also share his own idea(s) and inputs with you and this will become a double blessing for you.  

(2) Get A Mentor

Someone who is correctly mentored can hardy fail. So, get yourself a mentor that is experienced in whatever you want to do to help you with basic advice and guides towards success in your business. For example, if you want to do a poultry business, get an advisor or mentor in that business line who will/can serve as your guide or mentor. It does not mean that you should go and hire a paid expert or a coach. No, it can be a friend or close relation who has knowledge and experience in the business line you want to go into. This could be someone who is older or younger than you. The age doesn’t really matter in so far as the person is experienced in whatever you want to do.

(3) Take Advantage of Free Trainings

During the COVID 19 global lockdown of 2020, I sourced online for companies that take free training that can generate money and I was able to get few of them. I took some courses with them without paying a dime yet I can generate a source of income from. For example, I learnt graphic design using my mobile phone and I leant how to make flyers, logos, and basic graphic designs. Now, I generate income from it by designing logo, flyers, and word extracts from webinars and seminars. There are lots of similar free trainings online and offline which you can take advantage of today. Take advantage of as many free trainings available which can help you source for money to finance your startup today.

(4) Develop Financial Discipline

One way you can bootstrap a startup is to learn financial discipline. This will help you to save up money. Eventually, when you start the business you will disciplined enough not to spend your profit first on yourself but on your business for the sustenance and growth of the business. Inculcate an act of saving. It goes a long way in bootstrapping your startup.

(5) Improvise!

When bootstrapping, you must learn or have improvising skills, this will help you to put several things together to create something related to your idea so as to get what you want at the end of the day.

(6) Do It Yourself (DIY)

Instead of hiring people when starting up, it is very important and necessary to try to do things yourself. Learn how to be multifaceted; it will help you to save a lot of money that you would have spent paying for labor. Besides, it helps you to know everything about your business before employing people.

(7) Search For and Utilize SME Available Funding Opportunities

In Nigeria, we have private group of companies or people who give loans to small businesses without any collateral or interest. They give as low as 10,000 naira so as to assist startup and they give reasonable amount of time to pay. They help to ease the burden of looking for capital among entrepreneur. You should consider getting these Small and Medium Enterprises (SMEs) to bootstrap your startup.

(8) Go For Teamwork

One of the basic skills for bootstrapping is teamwork. Get a team to work with. This will help to reduce the burden of working alone. Get people who trust and believe in your mission and vision, people who will not mind working as volunteers, people who are willing to learn, people who are willing to use your idea to sharpen their own idea(s), and/or people who are willing to build from the scratch with you.

(9) Engage in Strategic Planning

All business ideas are always big at the start. When bootstrapping, you must learn to strategize i.e. narrow down your business idea by starting small. If your initial plan is to supply your product to 10 states, you can start by supplying first to your street and then gradually you move to supplying your town. Then, as the business grows, you can start supplying your local government and then to your state. This means that your initial idea has become a reality over time and you have learnt in the process. This involve planning and breaking down of your gigantic business ideas into small, easily realistic and implementable chunks.

(10) Develop A Positive Mindset

These include believing in you, ideas, goals, objective, aspirations and dreams. When bootstrapping, you have to be optimistic and have a positive mindset in order to keep going and also make you standout when people see your passion and consistency and they see you making something out of nothing. Do not look at the risk instead focus on the idea.

(11) Go Digital

Make good use of the internet. The social media, for example, will help you to sell yourself and expose you to people who might love your business idea. It helps you to cover a wider area. I have heard a lot of stories from entrepreneur, how they got investors online who were willing to invest in their business due to what they saw them doing online. There, are several online platforms you can showcase your idea and skills. So, go online and show the world what you got. You never know where your angel investor will come from.


Conclusively, bootstrapping might be difficult at first but it will definitely yield great returns later if done properly. You have to equip yourself with a lot of information so that you can be focused and strategic. Determination and flexibility is the key to a successful bootstrapping. Note that it is just a matter of time, very soon your money will work for you and you will be an employer of labour.



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Venture Capitalist Firms in Nigeria You Should Trust




Venture capitalist firms popularly referred to as “VC” are mostly needed for small-scale services. They invest in people’s business and make sure it grows and brings a lot of profit. There are so many of Venture Capitalist firms in Nigeria and while some can be dangerous to ones business, there are others that can be very good and beneficial.

Examples of venture capitalist firms in Nigeria include Venture platform, SPARK capital, EchoVC Partners, Growth Capital Fund, SLA Accelerator LeadPath Nigeria, Lagos Angel Network (LAN), GreenTree Investment Company, Greenhouse Capital, Microtraction, to mention few.

Here is why some or all of these VCs are very good when it comes to investing with them. Some of the ones I list and explain below are what I deem to be the Venture Capitalist firms in Nigeria you should trust.

Venture Capitalist Firms in Nigeria You Should Trust

Venture Capitalist Firms in Nigeria You Should Trust

Top 10 Venture Capitalist Firms in Nigeria You Should Trust

The top 10 Venture Capitalist firms in Nigeria that I will be covering in this article are

  1. Venture platform
  2. SPARK capital
  3. EchoVC Partners
  4. Growth Capital Fund (GC Fund)
  5. Greenhouse Capital
  6. SLA Accelerator LeadPath Nigeria
  7. Lagos Angel Network (LAN)
  8. LeadPath Nigeria
  9. GreenTree Investment Company, and
  10. Microtraction

(1) Venture Platform

Venture Platform was founded by Kola Aina and their major role is to help start-up companies in Nigeria grow. The Company also extends its services and coverage to other parts of Africa which makes it a reliable company to consider when choosing a Venture Capitalist firm to invest in Nigeria. They have helped a number of startup companies to grow example of which includes Piggybank, MobileForms, Jalo, etc.

(2) SPARK Capital

SPARK Capital focuses on building companies mainly in Lagos and its founded by Jason Njoku. They have helped a lot of companies in funding and most of the companies include Paystack, OgaVenue, Drinks NG, etc.

Paystack Company was recently (2020) sold for 200 million dollars which improves the profit of SPARK Capital. Mostly, this venture capitalist receives 30% and more profit. Funding and making Paystack a global company to be sold at that huge amount suggests that they are a good company to invest with.

(3) Greenhouse Capital

Greenhouse Capital was founded by Venture Garden Group with the vision of becoming the biggest Fintech Company in the whole of Africa. It was founded in 2016 and they already have a strong stand when it comes to investment in business. They have helped popular companies from startups to established businesses to become a massive and major business to be reckoned with in Nigeria.

Examples of companies funded and helped by Greenhouse Capital include Flutterwave, Rensource, Riby, TalentBase and many more. Max NG is also one of the companies funded by Greenhouse Capital. Max NG is an okada business just like Opay. For Max NG to still be standing and operating well in Nigeria till date even with the emergence and disappearence of Opay’s Oride, it shows that the Greenhouse Capital is a strong Venture Capitalist to trust in starting and supporting of business.

Related: Why You Should Avoid Venture Capitalists And Angel Investors In Your Business

(4) Growth Capital Fund (GC Fund)

GC Fund just like other Venture Capitalists helps start-up businesses in Nigeria. They support innovative ideas and help to fund them. Their main purpose in funding businesses is building of infrastructure by using technology. Some of the companies that invest with Growth Capital are OMidyar Network, Bank of Industry, and Venture Garden Group. Remember that Venture Garden Group is the founder of another VC company called Greenhouse being discussed earlier. For a VC Company which is Growth Capital to fund Venture Garden Group which later founded another trusted VC Company is very remarkable and shows how strong and trustworthy they are.

(5) LeadPath Nigeria

Leadpath Nigeria company like other VC companies helps in funding other startup companies. But it’s not only startup companies that they fund. Any medium-sized company that is interested in more funding can also go to LeadPath Nigeria for funding.

They support majorly the growth of mobile technology idea and other software and web startup businesses. Leadpath supports with funds ranging from $25,000 to $100,000 for a start-up and several millions later as follow-up.

(6) GreenTree Investment Company

This, just like other investment companies also deal with start-up companies and invest in them to profit from them greatly. They provide a great framework for a company and also help in legal financial advice to the baby company. This company like also others have funded and invented in lots of companies and they were started in 2014. Examples of the companies being funded by GreenTree include Precurio and Big Cabal Media.

(7) Microtraction

Another example of a Venture Capitalist firm in Nigeria to trust is Microtraction. Microtraction also helps in funding of startup companies like others. Microtraction funds in billions of dollars which makes them a high funding company. It doesn’t take a fraud company to this stage of financially funding other businesses in billion dollars but a company that’s worth trusting when choosing a Venture Capitalist firm to invest in. They invest in ideas that are technology-driven and which are proven to be very smart.

Microtraction has funded a lot of popular companies in Nigeria which include Cowrywise, BuyCoins,, ALLpro, etc. Most of these new companies deal with bank-related businesses and cryptocurrencies. So, if you have an idea about developing a business that deals with saving money or any cryptocurrencies, Microtraction is the venture capitalist firm to trust.

(8) Lagos Angel Network (LAN)

Moving further on the list of Venture Capitalist companies to trust is Nigeria is Lagos Angel Network (LAN). This is also a Venture Capitalist firm that deals with startup businesses and they are very active in Africa. Angel investors are individuals or professionals that come together and raise funds and to invest in startup businesses.

Since being a professional angel investor gives one the idea of a business to grow or not to grow, this venture is definitely among the companies to trust when investing with them. They were founded in Lagos and in the year 2014. Also, they are based in Lagos State, Nigeria and have funded a lot of startup companies located mostly in Lagos. In short, they have funded dozens upon dozens of startup companies.

(9) EchoVC Partners

This is another Venture Capitalist firm you can’t even miss even if you want to. The name speaks volume because the tagline, “VC” is already incorporated into the company name. EchoVC Partners is a Nigeria company that has extended its tentacles to other part of the world like sub-Saharan Africa and North America. It has become an international company which has proved reliable over time. They also help startup companies and invest hugely in them. EchoVC has proved to be a leading Venture Capitalist around the world by investing in some popular companies which include Hotels NG, Care45, Lifebank, MyPadi, etc.

(10) SLA Accelerator

Honorable mention includes the SLA Accelerator which has helped young African women with funding in ensuring a successful career for them. This company has been featured in CNN, CNBC Africa, and other important news outlet in the world.

When looking for a venture capitalist to fund your business ideas, these are some of the best ones to always look out for and you will never regret it.



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Business Ideas

How To Start A Loan Business In Nigeria




One of the major challenges faced by SMEs is how to get money to start or run the business smoothly. Adequate capital is very important to the success of any business especially when the business is still at the startup stage. At this stage, adequate funds are needed to keep it running even before the profits starts to stream in.

In the quest to get adequate funding for their businesses, many business owners go from bank to bank trying to secure loans. This, of course could be frustrating and cumbersome most of the time. Due to the frustrating process and requirements involved in getting bank loans, many businesses have been forced to quit, relocate or change business lines.

Going to moneylenders for business financing is arguably a better option for getting start-up and running capital for most businesses today. Besides business and business financing, there are many individuals/paid employees today who are also in need of extra cash to pay for their piling bills or take care of the ever-increasing high cost of living before the salary comes in.

Starting a money lending business or loan business could, therefore, become a good choice for an aspiring entrepreneur who is interested in venturing into the Financial Services industry. Of course, you must have a considerable start-up capital and a good understanding of how the financial business climate works. By starting a loan business in Nigeria, you would solve a substantial part of the problem faced by many Small and Medium Enterprises (SMEs) and make appreciable gain in the process.

Starting a loan business in Nigeria

Starting a loan business in Nigeria

What is Loan Business About?

Loan business or Money lending is simply giving another individual/business money with a written agreement that the said individual/business would pay back the money with an agreed upon interest. It is a business that is lucrative and is not as heavily regulated as other financial institutions like Banks, Insurance Companies, Mortgage Houses, Mutual Funds Companies, etc.

This business of money lending has been delegated to various states in Nigeria and is being regulated by them. For example, in Lagos State, Section 4 of the Money Lenders’ Law of Lagos state defines a money lender as someone who lends out money at an interest or lends an amount out in lieu of getting paid back a larger sum of money. What this simply means is that anyone who lends money to get interest later on it is presumed to be a money lender. Note that this law only applies to people who are actively involved in the money lending business and not individuals who lend money to friends who are in need.

Business Structure of Loan Business in Nigeria

The main selling point for money lending businesses or loan businesses in Nigeria is the assurance of getting back an interest on a sum of money loaned out to an individual. It is no news that lending money can be a risky thing to do, especially to start-ups. This is why the interest rate has to be substantial to cover the potential risk of losing a particular investment.

A money lending business requires you to develop a good business structure and obtain all the necessary government licences. Starting out, you would most likely have to use your own money as a starting fund for your loan business. If this is what you wish to do which I strongly advise, you would, therefore, be running a Private Lending Business. “Private” in the sense that you would be the sole financier of the business without the need for investors.

A moneylender’s success lies in his/her ability to spot people that truly deserve a loan and weed-out those who could cause trouble in the future after obtaining the loan. Putting down a proper business plan and conducting adequate feasibility studies before starting the business will open your eyes to the likelihood of success or failure of this business and also the future growth opportunities it has.

There are various ways by which moneylenders offer their services such as checks cashing, instalment loans, advances on paydays, mortgage and other small credit services. These types of services cannot be provided by large banks.

Why Licensing Is Fundamental in Money Lending Business

Just borrowing people money does not automatically make you a moneylender. To be in this line of business, you have to be a licensed moneylender by the relevant government authority.

Before venturing into this business, you have to understand what you can and cannot do to get back the money owed you. There are situations where/when borrowers might not want to repay loans. In this case a licensed moneylender can institute an action in Court to recover the principal loan including the accrued interests.

On the other hand, a court action cannot be instituted by an unlicensed moneylender in a case of a borrower’s refusal to pay back the loan and/or the interest on the loaned sum. The only step he can take is to stand as an individual in court to get back the actual money borrowed but would have to forfeit the accrued interest on the loan.

Procedure for Obtaining License

To obtain your license for starting a loan business in Nigeria, please, visit any Magistrate Court in Nigeria having jurisdiction in the area you want to run the business, then apply with the following supporting documents:

  1. A cover letter addressed to the Chief Magistrate on your Company’s letterhead.
  2. Certified True Copy of CAC Form 2.
  3. Certified True Copy of CAC Form 7.
  4. Memorandum and Articles of Association of the Company.
  5. Certificate of Incorporation.
  6. Tax Clearance of the Applicant.
  7. Police Clearance from the Commissioner of Police.
  8. Evidence of Maintenance of current account with a licensed Bank.

After your application and the supporting documents have been reviewed and vetted by the office of the Chief Magistrate, a Letter and Forms B and C will be issued to you.

Please note that the objects in your Company’s Memorandum of Association must be clearly stated as a financial service or money lending business. Also, N20, 000,000 (Twenty Million Naira) is the minimum share capital required.

Upon getting the necessary Court documents, proceed to the Ministry of Home Affairs and Tourism to apply with the under-listed accompanying documents.

  1. Application letter.
  2. Money Lender Ordinance [Form B] 1938 – from Magistrate Court.
  3. Duly completed Form C- from Magistrate Court.
  4. Police Report from Commissioner of Police showing- fingerprints of individual Applicants/Directors/ Proprietors/.
  5. 3-year Tax Clearance Certificate, [including current year] / Development Levy for each individual Applicant/ Director/ Proprietor.
  6. Pay as You Earn [PAYE] Certificate, Tax Clearance of at least two (2) of its directors, and evidence of payment of Company taxes.
  7. Copy of Certificate of Incorporation and CTCs of Forms CAC 2 & 7.
  8. Evidence of payment of Application fees.
  9. Evidence of maintenance of a bank account with a licensed bank.

The government officials would visit the intended office where you wish to or currently operate from for physical inspection. This is the final stage. During this visitation, your records will be inspected if your company had already been running for a while unlicensed, engaging in the business of money lending. Else, only the office premises and officers would be inspected. If this activity goes well and the officials are satisfied with the compliance of the office with the perquisite statutory requirements, the Money Lending License Certificate would then be issued to you or your company.

Tips for Running a Successful Loan Business in Nigeria

If you’re planning on starting a money lending company: Here’s a list of the things you need to keep in mind

  1. Charge interest rates that are appropriate to the risks involved in the loan;
  2. It is always good to start with a small market to be competitive;
  3. Confirm the credibility of your client from two to three sources before engaging them;
  4. Make sure to check your customer’s insurance especially in the case of big loan amounts;
  5. Maintain a professional office space; keep it clean.
  6. Keeping a friendly environment can help show your clients that they can trust you;
  7. Make sure to keep adequate documents of every detail of your loan; and when the time is right – you can expand;
  8. Avoid creating artificial geographical limits for your company


Money is an essential commodity for every human and it is always in constant demand. After getting some money, people tend to need more money no matter how much they have because human needs are insatiable; as humans, we always need more. We need money to start off a business, to take care of bills, to buy ourselves luxuries, even to pay off loans. These necessities of life make people seek out loans on a consistent basis and this is where the money lending business comes in.

Having explained what is involved in the business of money lending above, you should be able to start and successfully manage a loan business in Nigeria any time from now. I carefully explained the processes to follow if you want to start a money lending business.

It is worthy to note that money lending business can be risky and also involves a large amount of work just like most financial businesses out there. However, having a good business plan with adequate knowledge of the industry, operating a loan business can turn out to be a very profitable business to do.

In case you are looking for a reliable company to get funding to start your loan business, you should try Sumotrust. The company is reliable, tested and trusted when it comes to supporting businesses to attain great heights in Nigeria and beyond.



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