VICTOR Daniyan, CEO of Nearpays, was all set to pitch his contactless payment solution to investors at Plug and Play's closed-door gathering. However, his dreams were shattered when a visa delay prevented him from traveling to the event, highlighting the systemic travel bottlenecks that African founders face in their quest for funding.

This is not an isolated incident. First-time, early-stage founders in Africa are often plagued by issues that prevent them from accessing funding opportunities. Geographical scrutiny, trust issues, and lack of experience are just a few of the hurdles they must overcome to attract investors. Uzochukwu Mbamalu, CEO of Palremit, a Nigerian fintech startup, experienced this firsthand when he traveled to Kenya and encountered skepticism from a potential investor simply because he was from Nigeria.

The lack of trust is often tied to geography, with investors perceiving founders from certain regions as higher risk. This perception can be a major obstacle for African founders seeking funding. "If the founder is in Nigeria, the risk is higher; the founder could disappear, for example," explained Mbamalu. "The infrastructure might collapse, so there's no better way to remain in the know of the business when they're miles away with no boots on the ground."

To overcome these challenges, many African founders are forced to travel abroad to build relationships with investors and demonstrate their global perception. This can be a costly and time-consuming exercise, with some founders even relocating permanently to places like Europe or the US. Mbamalu, for instance, now lives in Europe, managing Palremit remotely, and has seen a significant increase in funding opportunities since making the move.

However, this approach can also have negative consequences. Founders may be pressured to create a global perception that is not necessarily aligned with their local market needs. They may also be forced to adopt business structures that are not suitable for their region, such as registering their companies in Delaware, US, to attract international investors. This can lead to a loss of focus and a strain on resources, as well as a lack of local context and understanding.

The onus is on local investors to step in and provide much-needed support to African founders. By investing in local talent and providing regional context, they can help level the playing field and create a more even ecosystem. Until then, African founders will continue to face an uphill battle in their quest for funding, forced to navigate the complexities of geographical scrutiny, trust issues, and systemic travel bottlenecks.

The story of Victor Daniyan and Uzochukwu Mbamalu serves as a stark reminder of the challenges that African founders face in accessing funding opportunities. As the ecosystem continues to evolve, it is essential that we address these systemic issues and create a more inclusive and supportive environment for all founders, regardless of their geographical location.