Sage Grey Finance's Runsewe on Nigerian Capital Challenges

Temitope Runsewe, the Managing Director of Sage Grey Finance, stated that many Nigerian businesses, despite having innovative products and loyal customers, face challenges in attracting the necessary capital for scaling. He emphasized that the issue often lies not in the quality of the business idea but in the company's structure to receive institutional investment.

Investors are increasingly prioritizing "investability" over mere profitability or innovation. Runsewe outlined that investors seek detailed answers regarding market size, customer demand, scalability, business economics, management capability, governance, and the potential for returns on new capital.

He noted that while a good product is crucial, it does not guarantee a good investment. Businesses must demonstrate customer payment willingness, acquisition costs, retention strategies, competitive advantages, and sustainable cash flow generation.

He also highlighted the growing importance of distribution, particularly for technology companies, stating that exceptional software can still fail commercially without effective customer acquisition strategies. Runsewe pointed out a significant structural gap between available capital in Nigeria and the number of businesses capable of utilizing it effectively.