On the second day of the event, speakers focused on the challenges and realities of raising funds in Tanzania.
Dar es Salaam. As Tanzania Start-up Week 2025 continues, local founders are being reminded of the importance of building a strong foundation before seeking venture capital.
On the second day of the event, speakers focused on the challenges and realities of raising funds in Tanzania.
Speaking on venture capital, Beem CEO Taha Jiwaji advised start-ups to raise money at the right stage.
“It’s better to achieve product-market fit before you raise external money. You can start with funds from friends and family or small grants. It may be less stressful and helps solidify your product-market fit,” he said.
He added that finding product-market fit first allows founders to use VC funding more effectively for growth.
“VCs are only concerned about your next raise. If you haven’t found product-market fit, you may not fit into their 18-month or two-year funding cycle,” he explained.
Mr Jiwaji also noted the challenges of working with large organisations.
“We try to keep partnerships at arm’s length. We offer business or create opportunities, then negotiate harder to get more favourable terms,” he said, encouraging start-ups to remain independent.
“I always urge start-ups to stand on your own feet. If you can do without them, do so initially, because large partners may try to lock you in, which can limit growth,” he added.
On the investment landscape, Coprosperity Fund Managing Partner Antony Adolf said attracting international capital is easier than raising local funds.
“Addressing regulatory issues around third-party capital is fundamental to attracting investment. The overall regulatory framework needs attention,” he said, noting that Tanzania could learn from Rwanda in becoming a hub for third-party investment.
He also emphasised persistence. “There are many VCs. Never give up. And don’t be annoying—be tactful in your approach to VCs and angel investors,” he concluded, underscoring the need for strategy and patience as Tanzania’s start-up ecosystem continues to grow.
