Building trust through local funding networks

Startups in Africa: It’s time we stop funding ghosts and start funding credibility. Too often, funding lands in the hands of folks with perfect decks but zero grassroots connection. The real builders? Somewhere in a hostel, cyber, or village, creating brilliance… unheard. So how do we fund differently? Transparently? Credibly? Here's the new game plan for African startup funding: = Community-Led Vetting Not just panels of suits. Let actual people from the ground — youth reps, local entrepreneurs, experts — vet pitches. They know what's real. = Live, Open Pitches Let founders pitch live on LinkedIn or YouTube. Public Q&A. Let the people see and speak. = Mini MVP Pilots Before the $100K, try $5K to test the waters in the community. If it works, we double down. = Open Feedback Loops WhatsApp groups, SMS polls, USSD feedback. The village will tell you if the founder is lying. = Public Dashboards for Progress We’re not hiding pitch decks in vaults. If you're funded, we showcase your wins and fails publicly. Think: live scoreboard for innovation. = Local Co-signers Fund startups with local champions. Cooperative leaders, elders, teachers. People with credibility who keep things grounded. We don’t need another “Tech Hub” with no tech. We need funding built on trust, locally rooted, and globally smart. This VC? It's for you, by you. Even if you're coding from a hostel in oletipis. #FundingAfrica #StartupCredibility #DecentralizedVC #BuildInAfrica #CommunityCapital #DAOVC

"Waiting for Silicon Valley to fund your African start-up is like expecting Nairobi traffic to end because you prayed." In the face of limited VC access, the African start-up ecosystem continues to punch above its weight. But the truth is, most of us are building without a lifeline. While headlines celebrate the few start-ups that raise millions, thousands more struggle to get even $5,000 in seed funding. It doesn’t have to be this way. We don’t need to wait for "international investors" to see our potential. We can build alternative, culturally-grounded funding pools that move money to innovation faster, smarter, and with less bureaucracy. Here’s my thought: 1. Decentralized Chama Investment Funds Let’s take the sacred chama, the savings group that’s built homes, funded weddings, and paid school fees, and flip it into a micro VC syndicate. How it works: Small groups of professionals pool money monthly. Evaluate and vote on start-ups to fund. Returns can be reinvested or cashed out annually. Estimated Pool: $10,000–$50,000 per chama. 2. County-Based Start-up Trusts Why do counties only spend money on wheelbarrows and workshops? Each of Kenya’s 47 counties can set up a Startup Innovation Trust Fund to support local entrepreneurs solving county-specific problems. Example: Kisumu supports agri-tech & lake economy ventures. Mombasa invests in tourism-tech. Turkana backs water innovation start-ups. Funding sources: budget reallocations, diaspora bonds, and donor partnerships. 3. Diaspora Co-investment Platforms Kenyans abroad send back $4B+ annually, yet most can’t invest in local start-ups securely. Worse still conned of their hard-earned money. Let’s create regulated, secure platforms where diaspora can: Invest from $50 upwards in vetted start-ups. Track progress. Convert investments into equity or returns. 4. University Innovation Endowment Funds Instead of just graduating job seekers, let’s help universities graduate founders. Each major university creates an endowment fund: Alumni contribute. The government matches. Annual pitching competitions decide disbursements. Think Y-Combinator, but in Multimedia University of Kenya 5. Faith-Based Investment Pools Churches and mosques raise billions. Imagine allocating 5% of tithes to: Health tech. Ethical fintech. Youth-run innovation hubs. "Whatsoever you do for the least of these start-up founders…" 6. Barter-for-Equity Platforms Cash isn’t always king, sometimes, skills are. Let’s build platforms where: A lawyer drafts your IP documents for 1% equity. A dev codes your MVP in exchange for future stock. A designer brands your app for convertible notes. Want to Collaborate? I’m working on co-developing these models. Let’s build Chumvi Invest.

Before it was about getting donors to write checks. Now it’s about involving them in your ecosystem. Here’s 5 steps to get started today: You’re not just fundraising anymore. You’re onboarding stakeholders. If you want repeatable, compounding revenue from donors, partners, and decision-makers, you need to stop treating them like check-writers… …and start treating them like collaborators in a living system. Here’s how. 1. Diagnose your “center of gravity” Most orgs center fundraising around the mission. But the real gravitational pull for donors is their identity. → Ask yourself: What is the identity we help our funders step into? Examples: Systems Disruptor. Local Hero. Climate Investor. Opportunity Builder. Build messaging, experiences, and invites around that identity, not just impact stats. 2. Turn every program into a flywheel for new capital Stop separating “program delivery” from “fundraising.” Your programs are your best sales engine → Examples: • Invite donors to shadow frontline staff for one hour • Allow funders to sponsor a real-time decision and see the outcome • Let supporters “unlock” bonus services for beneficiaries through engagement, not just cash People fund what they help shape. 3. Use feedback as a funding mechanism Most orgs treat surveys as box-checking. But used right, feedback is fundraising foreplay. → Ask donors and partners to co-define what “success” looks like before you report back. Then build dashboards, stories, and events around their metrics. You didn’t just show impact. You made them part of the operating model. 4. Make your “thank you” do heavy lifting Thanking donors isn’t the end of a transaction. It’s the first trust test for future collaboration. → Instead of a generic “thank you,” send: • A 1-minute voice memo with a specific insight you gained from their gift • A sneak peek at a challenge you’re tackling and ask for their perspective • A micro-invite: “Can I get your eyes on something next week?” You’re not closing a loop. You’re opening a door. 5. Build a “Donor OS” (Operating System) Every funder should have a journey, not just a transaction history. → Track things like: • What insight made them first say “I’m in”? • Who do they influence (and who influences them)? • What kind of risk are they comfortable taking? • What internal narrative did your mission fulfill for them? Then tailor comms, invitations, and roles accordingly. Not everyone needs another newsletter but someone does want a seat at the strategy table. With purpose and impact, Mario

BEYOND FUNDING, RELATIONSHIP IS KEY. Many individuals and organisations have asked me about the reasons some reputable organisations are not experiencing funding shortages or impacted by funding cuts, and why they can sustain programs throughout the year. Well, let me try and give some clear perspective. Apart from strategically positioning an organisation for funding and crafting competitive grant applications, it is essential to understand how to maintain sustainable relationships with donor agencies and funders before, during, and beyond the project lifecycle. Dear NGO Leaders, in today’s development landscape, funding flows through trust, and trust is built over time through meaningful relationships. If you are only reaching out to donor agencies when you need funding, you're already behind. Establishing a robust and effective alliance with potential funders is crucial for organisations seeking financial support and partnership. By cultivating these relationships, you gain valuable insights into their priorities, funding cycles, and specific opportunities that may align with your organisation's mission and goals. Here’s why building strong relationships with donor agencies is not optional but rather essential for NGO growth in Africa and beyond: 1. Trust becomes the Most Valuable Asset: Donors are more likely to support organisations they are familiar with and trust. Because of these reasons: ✅ You become less of a risk ✅ They believe in your capacity ✅ They recommend you to others. Don’t joke with this. 2. Unlock Unique Insights through Connection: Building relationships opens doors to opportunities and knowledge that others might miss. Like; 💡 Early signals before calls are released 💡 Feedback that improves future applications 💡 Informal advice on how to align your proposal application 3. Transforming Support: It's not just about more money. It's about building trust with your donors! When donors believe in your mission, they’re more likely to contribute in ways that truly make a difference. Donors who trust you may offer: 📈 Multi-year grants 📈 Unrestricted funding 📈 Capacity-building support 📈 Space to co-create impact, not just implement 4. You will be invited to the Table: When relationships grow, your influence will grow too. You will be seen as a strategic ally, not just a grantee. You will get involved in project design, welcoming receptions, donor anniversary, learning sessions, policy dialogue, and high-level forums. 5. You Gain Long-Term Sustainability: Donor relationships provide more than money. They offer credibility, capacity building, learning, continuity, and collaboration, and these are the true foundations of a sustainable organisation.  “Donor relationships are not transactions; they are partnerships in impact.” #GrantWriting #NGODevelopment #NonprofitLeadership #relationship #FundraisingStrategy #OrganizationalDevelopment #ResourceMobilization

Your network is your nonprofit’s lifeline. Your relationships are what keep your mission alive. Here’s a real story to prove it. In 2020, the pandemic turned the world upside down—and nonprofits like "Hot Bread Kitchen" faced faced a massive funding crisis. Their mission was simple: Train immigrant women in culinary skills to help them secure jobs in restaurants and food service. But with restaurants closed and no more funding in sight, they were worried that they might shut down. That’s when they thought to reach out to their network. → They partnered with Goldbelly, a food delivery platform, to help their graduates sell handmade baked goods to a nationwide audience. → They worked with Citi Bank to fund emergency relief programs for immigrant workers. → A local NYC grocer featured their graduates’ baked goods on their shelves, providing both visibility and revenue. These weren’t random acts of support. They were the result of years spent building trust and nurturing relationships. And the results were extraordinary: Hot Bread Kitchen not only survived the pandemic but emerged as a leader in nonprofit innovation, showing how creative partnerships can drive impact even in the toughest times. So, what’s the lesson here for nonprofit leaders like you? → Spot the gaps. What does your nonprofit need right now—visibility, expertise, or funding? Look for partners who can help you fill those gaps in unexpected ways. → Give before you take. Don’t ask for help before showing up for your partners. How can your mission add value to their goals? → Keep showing up. Relationships aren’t built over email. Attend their events, celebrate their wins, and invest in their success just as much as your own. Here’s a question to reflect on: Are you building a network that will sustain your mission in challenging times? Let’s talk: What’s one partnership that’s transformed the way your nonprofit operates? I’d love to hear your story.

Fund is not the problem, trust is! When engaging with young entrepreneurs, it’s often said that they have great ideas but lack the funds to execute them. This is particularly true in Kerala, where risk capital is relatively scarce compared to western countries. In these regions, funding is more readily available, enabling ideas to be brought to life with greater ease. However, in Kerala, the limited availability of risk capital makes securing funds more challenging. However, it’s a misconception to say that there is no funding available. In fact, there is plenty of capital in the market. The issue lies not in the availability of funds but in the trust required to access them. Without trust, funds will always be out of reach. Talrop's ecosystem development project requires a minimum of ₹100 crore every year. We have consistently secured this fund right here in Kerala, without any shortage. We have raised enough capital from this very market. So, the fund is not the problem; trust is. Money is hard-earned. When someone entrusts their funds, it’s crucial to honour that trust and use it responsibly. Fundraising must also be approached strategically and in phases. For instance, securing funds for the next 3-4 years during a seed round isn’t realistic, as the market is not mature enough to support such long-term commitments. Instead, the approach should be to break the concept into clear stages, with a detailed plan for the capital needed at each phase. Founders should first demonstrate their ability to operate with minimal debt, proving the concept's potential. Only then can they raise the funds necessary to fuel sustained growth and scale further. Ultimately, it’s all about trust. With trust, funds will follow. Focus on this question: “Why should they fund us?” or “How eligible am I to manage these funds?” By answering that, raising capital to bring visions to life becomes far more achievable. Remember - fund is not the problem; trust is. Focus on building trust! Thankfully, Safeer Najumudeen Co-founder & CEO, Talrop

𝐈 𝐝𝐨𝐧’𝐭 𝐰𝐨𝐫𝐤 𝐚𝐭 Women's Microfinance Initiative. 𝐁𝐮𝐭 𝐢𝐟 𝐈 𝐝𝐢𝐝, 𝐭𝐡𝐢𝐬 𝐰𝐨𝐮𝐥𝐝 𝐛𝐞 𝐦𝐲 𝐞𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧 𝐩𝐥𝐚𝐲𝐛𝐨𝐨𝐤. Because WMI’s village-level microloans to rural women are already powerful. As of 2024, WMI has issued 100,000+ loans totalling over $13,000,000 to women in more than 1,000 villages. Now, it’s time to elevate how those stories spread to new villages, new regions, and new partners. So I sat down and mapped 3 scalable ideas for Sub-Saharan Africa, rooted in trust, not tech. 𝐈𝐝𝐞𝐚 1: 𝐕𝐢𝐥𝐥𝐚𝐠𝐞 𝐄𝐜𝐡𝐨𝐞𝐬: 𝐆𝐫𝐨𝐮𝐧𝐝-𝐋𝐞𝐯𝐞𝐥 𝐒𝐭𝐨𝐫𝐲𝐭𝐞𝐥𝐥𝐢𝐧𝐠 For women with limited literacy or internet, trust isn’t built through ads, it’s built in person, in language, and in rhythm. Here’s how: -Radio Dramas & Call-In Shows in local dialects featuring borrower stories, skits, and Q&A. -Town Criers with Megaphones announcing WMI updates and meetings. 85% of rural households still hear them weekly. -Market Day Skits using songs and role-play to explain how loans helped buy seeds, pay fees, or launch side hustles. Because what’s memorable gets repeated. And what’s repeated builds trust. 𝐈𝐝𝐞𝐚 2: 𝐏𝐞𝐞𝐫-𝐏𝐨𝐰𝐞𝐫𝐞𝐝 𝐅𝐨𝐨𝐭𝐩𝐫𝐢𝐧𝐭𝐬: 𝐁𝐨𝐫𝐫𝐨𝐰𝐞𝐫𝐬 𝐭𝐨 𝐀𝐦𝐛𝐚𝐬𝐬𝐚𝐝𝐨𝐫𝐬 In low-trust environments, nothing scales faster than social proof. -Train Borrower-Ambassadors to lead info sessions in nearby villages equipped with kits, flashcards, and helplines. -“Bring a Friend” Referrals where each borrower invites one woman to the next session, increasing reach with zero media spend. -Celebrate Local Champions with village titles, creating pride, ownership, and status. 𝐈𝐝𝐞𝐚 3: 𝐃𝐢𝐚𝐥 𝐟𝐨𝐫 𝐂𝐡𝐚𝐧𝐠𝐞: 𝐔𝐒𝐒𝐃 𝐟𝐨𝐫 𝐎𝐟𝐟𝐥𝐢𝐧𝐞 𝐎𝐧𝐛𝐨𝐚𝐫𝐝𝐢𝐧𝐠 Smartphones may be scarce, but USSD works on all GSM devices and doesn’t need the internet. -Women dial *123# → get info, apply, or hear a success story via callback in their language. -Seamless pre-registration lets them enter loan size, contact prefs, and match to a local rep. -Partner with mobile providers (Airtel, MTN, Safaricom) to run free USSD flows or voice campaigns. Low-cost. Offline. Scalable. But why this deck? Because I care deeply about impact consulting, not just the glamorous kind, but the grounded kind. Reading about WMI reminded me that the best innovations don’t disrupt; they deepen. This was my way of contributing. If you work in inclusive finance, social design, or global dev, I’d love your feedback. Tagging the amazing folks at WMI, would love to hear what you think. (Robyn Nietert Jane Erickson, M. Ad. Ed June Kyakobye Elizabeth Gordon)