Segun Cole: A Conversation with the Ecosystem Builder Empowering Africa’s Entrepreneurs

Segun Cole says his entrepreneurial journey began at the age of 5, when his dad first introduced him to a computer. Born and raised in Lagos, Nigeria, Segun is a serial entrepreneur and founder of Ekocab, an on-demand mobility marketplace.

He now calls himself an ecosystem builder—he is the President of Startup Huddle Lagos, a support and advisory community of 235 startups from pre-series to Series C. While on his own entrepreneurial journey, Segun noticed something: although tech startups in Africa are attracting increased funding, the majority of this capital is disproportionately allocated to startups founded by non-Africans or Africans who operate internationally rather than within the continent. This led him to found Fund the Gap Alliance, an organisation dedicated to helping African entrepreneurs and bridge the funding gap. 

He is also an International Partner to the World Business Angel Fund, a Venture Partner at Wefunder, Openner.VC and Zero to One Capital, and is currently a member of the SEC working committee on Angel Investment and Venture Capital in Nigeria.

Whew. That’s quite a resumé. 

Let’s start with the big question. What inspired you to start Fund the Gap Alliance, and where would you hope to see it lead?

When I founded ekocab in 2017, I was totally naïve about what fundraising entailed—I just wanted to build a company and impact lives. I had no idea running my business out of my pocket was a term called bootstrapping, and I had stacked up a lot of debt struggling to keep the lights on. When I realized I was about to burn out, I started going online looking for any information I could find about fundraising, and looking for other sources of funding.

It was then that I learned of the term venture capital and these people called angel investors—and that is how my fundraising journey began.

I started reaching out to VCs and angel investors but unfortunately no one prepared me for the bias to come. We had VCs telling us that we had to be incorporated in Delaware, or we had to be part of a world class accelerator program, or I needed to have a white co-founder, or I needed to have an educational background outside Africa. This alarmed me and I began speaking about it on social media only to see founders from across the African continent reaching out to tell me that this was their experience too, and expressing how hard it was for them to raise capital as local founders as well. Realising this issue was pan-African is what inspired me to create Fund the Gap Alliance. The network addresses the issues of local founder underrepresentation in the allocation of venture capital across the African continent. Our alliance has raised capital for startups from 54 countries in Africa—but what we quickly realized was that we have fundamental problems affecting the global tech ecosystem, and that we could solve this problem beyond Africa. We’re now working with startups from 26 countries around the world, and it’s our vision to both make the fundraising process more seamless and democratize it, including venture capital education.

‍I imagine the funding gap is made up of both hard and soft barriers, from the material to the systemic. Could you say more about what the gap entails, and what the barriers are that Fund the Gap Alliance hopes to help overcome? 

‍Not investing in local talents. Startups in Africa face unique challenges that are often difficult for outsiders to understand. Fund the Gap Alliance advocates for startups to hire local teams with a deep knowledge of the local market, and helps venture capital firms gain a deeper understanding of the market. 

Limited access to information on early-stage startups in Africa. Fund the Gap Alliance is now working with venture capital firms, helping them leverage data-driven approaches to identify promising opportunities. This includes using machine learning and artificial intelligence to analyze data on startups, as well as using social media and other online platforms to identify potential investments.

Little or no collaboration amongst stakeholders. Fund the Gap Alliance now has corporate partners collaborating with companies in sectors like fintech and healthcare to provide startups with access to resources, mentorship, and funding. By working closely with corporate partners, and VC firms, we are able to provide startups with the support they need to succeed in the African market

No value-add services. Fund the Gap Alliance has been providing value-add services to startups to help them succeed. This includes providing mentorship and coaching, as well as connecting startups with potential customers, partners, and investors.

‍From Startup Huddle Lagos to Fund the Gap Alliance, a major theme in your career seems to be mentoring, building community, and bringing people together. What drives you to create this space for others? 

In my days of being a founder, I didn’t have the privilege of having mentors. I have seen how that limited my growth and development in so many areas of my entrepreneurial journey, and I’ve seen the level of progress a start up can make with the right mentors to guide and help them navigate this entrepreneurial terrain. This is what inspires me through the many hats I wear to support founders through mentoring, coaching, business development to make sure that they succeed. I’m literally giving them what I never had. It’s what gets me up early in the morning and keeps me going until late at night, having one-on-one with founders, office hours with founders, and most especially, helping female founders—because there is a $42 billion female funding gap that needs to be closed.

‍What advice do you have for African entrepreneurs and professionals hoping to enter the field, knowing that a systemic disadvantage exists that must be overcome? 

1. Focus on solving real problems: The best startups are those that solve real problems for real people. African founders should focus on identifying pressing issues in their communities and developing innovative solutions to address them.

2. Build a strong team: A startup is only as good as its team. Seek out talented and committed individuals who share their vision and values. Building a diverse team with a range of skills and experiences can also help a startup overcome challenges and adapt to changing market conditions.

3. Develop a solid business plan: A business plan is essential for any startup, as it provides a roadmap for success. African founders should develop a comprehensive plan that outlines their target market, revenue model, marketing strategy, and growth plans. They should also be prepared to pivot their strategy as needed to adapt to changing market conditions.

4. Seek out mentorship and guidance: Starting a business can be challenging. Seek out experienced entrepreneurs and investors and join a startup accelerator. They will provide valuable insights and help avoid common pitfalls.

5. Be patient and persistent: Building a successful startup takes time and persistence. Be prepared to face challenges and setbacks along the way, but should also remain focused on their long-term goals. With perseverance and a commitment to their vision, they can build a successful and impactful startup.

‍You call yourself an “ecosystem builder,” which is particularly evocative. What advice do you have for young professionals for fostering relationships, building networks, and creating community? 

Most people in Africa do not understand the term. Our space is seen in black-and-white terms: either you’re an operator or a VC, but there are shades of grey here, and it is in those shades of grey that the system thrives. Here is my advice. 

1. Attend industry-specific events: participate and actively engage.

2. Join professional associations and networks: take advantage of the leadership, professional development, and networking opportunities.

3. Establish a strong online presence: establish yourself as a thought leader that people want to seek out.

4. Seek mentorship: Identify and approach mentors within your industry who can provide guidance and support as you develop your career.

5. Build a culture of collaboration: Connect individuals with similar interests and facilitate conversations that lead to shared learning and growth.

I notice that you have “Investing in women is not a charity!” in your LinkedIn header, which I thought was brilliant. Could you say a little bit more about that statement, and what investing in women means to you, especially in developing countries? 

Due to bias in the tech world, you still have venture capital firms thinking they are doing women a favor by investing in their companies. There is still a strong need for education on gender lens investing (a strategy that considers gender factors in financial decisions to support companies that empower women). Investing in women stimulates economic growth, reduces poverty, and improves equality and equity. 

What’s the best advice you’ve ever been given? 

Always start with the why, and have a long term perspective.

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Images courtesy of: Segun Cole and Fund the Gap Alliance

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