Funny enough you are right Iroko was profitable before those investors came, now they are a loss making machine,bastian and jason both own i think 11% each of Iroko and their loss is crazy(African standard) maybe that is why he left also the first investor cashed out.
I hope they make profit oneday.
Problem with the Eco system is that many of our founders schooled abroad especially in the United states ,they bring back solutions and business models that are just incompatible with the Nigerian market.they create lot of hype and then they dont deliver,shebi,they can always run back to their base when things go wrong,they raise the bar making it difficult for the local-born founder to have access,some because they did one month internship in Silicon valley in some unknown dead startups wont let us hear word,anywhere they go they start their speech with how they help create a startup in Silicon valley,some of them even bring ideas and models which is just out of touch from reality.some of them are just motivational speech drunk forgetting that the Nigerian market is full with many internet illiterate.
Some founders think they can create billion dollars company from Nigeria forgetting that the Nigerian market is very small and underdeveloped and very behind in many aspect,some metrics of the some of our founders they post on medium are just fake and fabricated to give themselves more fame.imagine a startup that just started last year maybe after y combinator and other incubators calming they have done so so transaction but then you start wondering how this is possible in a country where many people are not internet friendly.
Our reputation as a yahoo yahoo nation is an hindrance for Nigeria tech company to go global,no foreign user will like to keep their info on your site when they know its from Nigeria because of our reputation.Change that yahoo yahoo image and some great company will come out from Nigeria.
Some have brought the mentality they you can only be successful with investors money,now,nobody is into the lean strategy,everybody wanna employ like they do in silicon valley even if their resources is low,international staff and so on forgetting that once the business fails,many of the staff will be unemployed,everybody just want to follow the easier part,nobody wanna do the hard work,they wanna be overnight millionaires.that is why they all focus on pitching investors and attending and travelling the world for investors instead of building their businesses and be strategic for investors.
Many founders just need to sometimes check in into the school of reality for them to actually create sustainable business in Nigeria.
Our grand fathers and mothers that have built great businesses that are still standing today,we should learn from them.One of the great guy in internet i respect so much is Seun (nairaland) even with all the criticism,it is still standing and making cash after 11 years.how many tech company in Nigeria can say they will still be there in the next 4 years,some just want to boost their ego or fulfill their fantasy by listing on stock exchange,the day you list that is the end of your business,The market and speculators now determine your business success.
Another stuff that is killing the eco system is nowadays everybody is claiming investor even if they gave you transport fair when the days were rough.these so called investors also attend investors meeting and are specially invited to host conference and summit in some eco system in Africa,there story is always how they they believed in you and invested in you,but they didn't tell the audience that they have no stake in your company and it was transport money they gave you.tired of people like these investors and we have many of them in Nigeria
Investors my A**
the moral of the story: create strategic business that can stand the test of time.