Acorn & Mustard

 By Bukola Edgar Beyond the Numbers: Why Financial Records Aren't the Only Important Factor to Consider If you're considering acquiring or investing in a startup, it's crucial to perform due diligence. Although financials are a critical consideration when investing in a startup, there are several other important factors that should not be overlooked, as they could also impede the startup's growth. Below are some key things to keep in mind when investing in or acquiring a startup: 1. Product. Verify that the company has a legitimate product and that reported metrics are accurate. Be cautious of companies that have the appearance of a product but no substance. For example, JPMorgan Chase recently  sued the founder of a fintech startup  it acquired for $175 million, alleging that the founder provided misleading information about the scale and success of the business by creating a long list of fake users. If you're investing in a company, be sure to confirm that the pro...

The Nigeria Startup Act was recently passed by the National Assembly and is assented to by the President of the Federal Republic of Nigeria today, 19 October 2022. As a legal mechanism for supporting the Nigerian tech industry, the Act contains some laudable provisions that could change the way Nigerian startups do business and interact with regulators. Here are 5 notable things that every startup founder should know about the Nigeria Startup Act 1. STARTUP LABELLING The Startup Act provides incentives and benefits for 'labelled' startups and certain service providers. To enjoy the benefits under the Act, a company must apply —to the startup portal— to be labelled as a startup. Only companies (and other business entities) that meet the following requirements will be granted the startup label: a registered company (or a partnership/sole proprietorship) that has not existed for more than 10 years; a company that carries out an endeavour that has to do with a digital technology pr...