10 ways to get funding for your Startup

It’s usually only done during the pre-seed funding stage. Nearly half of startups (45%) successfully raise around $100 million or more by bootstrapping in their initial days.

Research from the US Small Business Administration (SBA) found that founders using bootstrapping to fund their startups have a 52% 5-year survival rate. That’s much higher than businesses that depend on outside funding (35% survival rate).

Raising funds for your startup this way is more common than most founders realize. Nearly a quarter (22%) of startups fund their businesses with family and friends’ money.

Usually, the money you win in these competitions is all yours. The company giving you the funds won’t ask for equity or to pay back the funds after a specified period. There can be exceptions to this, so always read the fine print.

Across Ghana and the wider African ecosystem, organisations such as corporates, foundations, incubators, hubs, universities, and development partners run startup challenges to identify promising founders and back them with cash prizes, technical support, and credibility.

These competitions are often one of the fastest ways to access early support without giving away equity, especially at idea to early traction stage. Many offer:

• Cash prizes (grant-like funding)
• In-kind support (workspace, mentorship, software credits, training)
• Access to networks (investors, buyers, corporates, policymakers)
• Pilot opportunities (proof-of-concept with a partner)

Important: even when a prize is described as “free money,” founders should still check the terms. Some programmes may include conditions such as:

• Reporting requirements and milestones
• Restrictions on how funds are spent
• IP usage rights for publicity or demos
• Follow-on investment options (rare, but possible)
• Publicity obligations (branding, media, demo days)

Examples to consider (Ghana + Africa):

• Tony Elumelu Foundation (TEF) Entrepreneurship Programme (pan-African training + seed capital)
• MEST Africa startup challenges / demo days (varies by year)
• Stanbic Incubator / Stanbic entrepreneurship programmes (Ghana, varies by cycle)
• Kosmos Innovation Center (KIC) (agri and food systems, Ghana)
• GSMA Innovation Fund programmes (mobile and digital innovation, pan-African, periodic)
• Google for Startups programmes (Africa-focused cohorts, periodic)
• UNDP / UNICEF innovation challenges (topic-specific, periodic)
• AfCFTA, national digital economy, and sector-focused hackathons/challenges (varies by country/season)

Most grants are non-dilutive: you don’t give up equity, and you typically don’t repay the money. Grants can support:

• Product development and testing
• Market research and customer validation
• Marketing and customer acquisition
• Operations, training, and tooling
• Compliance, standards, and readiness (for regulated sectors)

What to watch for
Grants are not “free money” in the casual sense. Many come with:

• Clear deliverables and timelines
• Monitoring and reporting requirements
• Audits, documentation, and receipts
• Restrictions on what you can spend on
• Safeguarding and ethical requirements (especially where communities are involved)

Founders should only accept grants they can realistically manage because non-compliance can damage reputation and future eligibility.

• You’re pre-seed or early traction and need runway to test and prove the model.
• Your solution aligns with a funder priority: jobs, education, health, climate, inclusion, digital public goods, MSME growth, youth/women empowerment.
• You can produce evidence: incorporation, a clear plan, basic financial records, and measurable outcomes.

But grant applications are competitive and time-consuming. The best approach is to pursue grants where you’re clearly eligible and where the effort-to-reward makes sense.

Where grants tend to come from (Ghana + Africa):

• Government and public-sector enterprise support initiatives (varies by country and cycle).
• Development partners and foundations (country offices and pan-African funds).
• Corporate CSR and innovation programmes (telcos, banks, FMCGs, energy firms).
• University-linked innovation hubs and research commercialisation programmes.
• Impact investors offering “grant + support” for pipeline building.

How to win grants (practical steps)

1. Shortlist programmes that match your sector, stage, and geography.
2. Confirm eligibility and required documents early.
3. Submit a clear application: problem, solution, traction, budget, milestones, outcomes.
4. Be ready for interviews, demos, and due diligence.
5. If selected: sign agreements and implement with disciplined reporting.

Common eligibility filters you’ll see

• Youth-led, women-led, or underserved founder groups.
• Climate/green innovation.
• Community benefit and job creation.
• Specific industries (agri, health, edtech, fintech, logistics, manufacturing).
• Proof of registration, governance, and a basic financial trail.

Crowdfunding can be a great source of short-term financing, such as for launching a new product.

Here are some excellent crowdfunding platforms for Swiss startups:

• Kickstarter.
• Acredius.
• Cashare.
• Progettiamo.
• Innovation Starter.

You can do crowdfunding online via websites explicitly designed for it. You can also crowdfund in person in your local community and at startup events.

You can choose a donation-only crowdfunding model. Or you can offer rewards to your supporters in return for their investment. These can range from a free product when it launches to a stake or equity in your business.

Here are some programs with great funding offers for Ghana / Africa startups:

• MEST Africa – tech entrepreneurship training and early-stage support with hubs/network across Africa.
• Stanbic Business Incubator (Ghana) – entrepreneur support programmes including training, networks, and access-to-market/funding pathways.
• Kosmos Innovation Center (KIC) AgriTech Challenge Pro – accelerator-style programme supporting agritech entrepreneurs in Ghana.
• Google for Startups Accelerator (Africa) – a periodic accelerator programme for African startups (cohort timing varies by year).

In Ghana and across Africa, angels often invest at pre-seed to seed, and many bring more than money: introductions, credibility, and operator experience.

Where to find angels in Ghana and Africa

• Angel networks and syndicates: These are organised groups of angels who review deals together and sometimes invest collectively. Ghana has an established apex body for angel networks (GAIN).
• Demo days, pitch competitions, and hub events: Events run by hubs and ecosystem builders frequently attract angels, VCs, corporate partners, and development actors looking for investable startups (e.g., MEST Africa Challenge and similar pitch platforms).
• Founder-to-founder referrals: In practice, warm introductions still outperform cold outreach.
• Online databases: Crunchbase is commonly used to research investors and track companies and funding activity.

What to be careful about
Angel money is not just “cash in.” It’s a long-term relationship. Before taking angel capital, clarify:

• Equity expectations (and whether it matches your stage/valuation reality)
• Decision rights (board seat, veto rights, information rights)
• Follow-on ability (can they support future rounds or help you attract bigger investors?)
• Reputation and alignment (do they understand your sector and market constraints?)

VC is usually for businesses that have moved beyond “idea stage” and can show some combination of traction, scalable unit economics, and a credible path to expansion.

How big are VC tickets in Africa?
Across Africa, deal sizes vary widely; however, a useful anchor is that the median VC deal size in 2024 was approximately US$2.5 million (according to AVCA).
In practical terms for founders, VC can range from seed cheques (smaller) to Series A/B+ (much larger), depending on traction and risk.

What you give up (and what you get)
VC money is equity capital. In return for funding, investors will usually expect:

• A meaningful equity stake
• Strong governance and reporting
• Formal due diligence (legal, financial, product, market)
• A clear growth plan and milestones

Where founders in Ghana typically meet VC firms

• Demo days and accelerator pipelines
• Warm introductions through angels and founder networks
• Ecosystem connectors (hubs, advisory firms, DFIs, corporate innovation arms)

Examples of Africa-focused VC firms

• TLcom Capital (Africa-focused tech VC; seed to later stages).
• Partech (including Partech Africa funds) (global platform with Africa investing track record).
• Novastar Ventures (Africa-focused VC, impact-oriented).
• 4DX Ventures (pan-Africa focused VC).
• Oasis Capital Ghana (Ghana-based growth/venture capital fund manager).

In Ghana, loans are usually provided by:

• Banks and savings & loans
• Microfinance institutions
• Fintech and digital lenders
• Special-purpose programmes linked to government or development finance initiatives

What lenders in Ghana typically look for
Most lenders will assess some combination of:

• Business registration and governance documents.
• Bank statements and cashflow history.
• Revenue consistency and ability to repay.
• Collateral (sometimes required, sometimes reduced through programmes).
• Financial records (management accounts, audited statements if available).

(Requirements vary widely by lender and product.)

Important correction to keep the copy accurate
In Ghana, business loans are usually debt (you repay with interest). “Loans in exchange for equity” is not the norm for banks; when equity gets involved, it’s usually through investment funds or structured finance rather than a standard bank loan.

Government and programme-backed “guarantees” (why they matter)
One major barrier for MSMEs is collateral. Ghana has guarantee mechanisms that reduce lender risk and can make it easier for qualified businesses to access credit. Examples include:

• GIRSAL credit risk guarantees (notably for agribusiness lending, with coverage up to 70% in some schemes).
• Ghana CARES Guarantee Scheme (a guarantee scheme with stated caps/terms for participating institutions).
• Ghana EXIM Bank guarantee products that are positioned to support SMEs that may lack sufficient collateral.

Alternative “loan-like” pathways founders should know

• Debt crowdfunding / peer-to-peer lending is recognised as a model in Ghana’s fintech innovation context (conceptually similar to the Swiss “investors lend via a platform” idea, but the local availability depends on licensing and specific operators).
• Targeted sector facilities also exist (for example, bank products tied to specific development outcomes).

In Ghana, public listing routes include:

• GSE Main Market (typically for larger, established companies)

• Ghana Alternative Market (GAX) is a parallel market designed to accommodate SMEs and growth-stage businesses, including companies that may not meet main market requirements.

What “IPO-ready” really means (practically)
Going public isn’t just about revenue. It requires readiness across:

• Governance (board structure, independent oversight)
• Audited accounts and reporting discipline
• Shareholding structure and public float requirements (for GAX, the public float is stated as at least 25%, with a minimum shareholder spread).
• Meeting listing rules (e.g., GAX minimum stated capital requirement is GH¢250,000; other requirements apply).

Reality check for founders
Most startups don’t IPO. Many either remain private for a long time or exit through acquisitions/mergers instead. So on a Flaxur page, it’s best positioned as a long-term option for a narrow set of businesses, not a primary funding path.