Startups understand the problems of running or developing a business better than anyone else — fierce competition, budget constraints, and demanding customers that eat away at their already-thin margins and any time available to think of solutions. So, how do you, as a company, stand out in a highly competitive and fragmented industry, or at the very least create the possibility to do so?
The solution is to use technology to help the startup be its best digital self. Technology has become the bedrock of the startup ecosystem in an age where consumers have little time and even less patience.
Meanwhile, Pariti, a Kenya-based community-led marketplace that is building the digital infrastructure for emerging markets of startup ecosystems, has secured a seed funding of $2.85M led by US-based Harlem Capital.
It saw participation from other investors such as Better Ventures, Accelerated Ventures, Diverse Angels, AVG Basecamp and New General Market Partners.
The startup, which connects emerging market entrepreneurs with access, talent, and finance was founded by Yacob Berhane and Wossen Ayele in 2019. The company claims to have achieved 795 percent in the last year, according to CEO Berhane, who attributes this success to the COVID-19 pandemic and how the African digital ecosystem has reached an inflection point, minting half a dozen unicorns in the process.
The proceeds will be used to develop SaaS processes that include several kinds of capital raising, such as traditional equity and debt, as well as DeFi solutions.
The company also intends to improve its talent marketplace and develop a custom solution for investors wishing to invest in and support founders, employ talent, grow into other areas, and build larger communities.
“The pandemic was a Black Swan event since our platform saw a significant increase in activity.” Remote staffing and investing have exploded in popularity. “This was a bet we made a while back, but we couldn’t have predicted what was going to happen,” Berhane remarked.
How does Pariti function?
When a founder collaborates with Pariti, they use an assessment tool to evaluate their business. They offer pitch materials as well as information about their company there. Post that, Pariti evaluates each company based on more than 70 factors, including the team, market, product, and economics.
After that, Pariti compares each company to its competitors. Some of the comparisons made include companies in the same industry, product stage, revenue, and fundraising. The founder receives a comprehensive evaluation that includes feedback on their pitch materials, underlying indicators that may be used to grow their firm, and their capacity to obtain financing in the future.
Pariti’s main product is the Recommendation Engine, which allows entrepreneurs to submit their businesses for assessment and comments from Pariti’s experts. The engine then recommends customised next steps for the founders in areas where the company requires assistance.
The Kenya-based marketplace also assists talent in monetizing their abilities, as well as VCs and angel investors in locating, vetting, and closing transactions.
Pariti’s pitch assessment and recommendation engine, according to Berhane, includes some predictability elements that allow the platform to forecast how startups would do in terms of funding.
Pariti claims to have over 880 enterprises on its platform, spread across 42 countries, up from 500 earlier this year.
