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Lungile Msomi

Digital Content Specialist

Bio
Meet Lungile Msomi, is the digital content specialist for SME South Africa with a Media Studies and Communication degree from the University of the Free State. With experience ranging from journalism to copywriting—and now steering the ship as Startup.Africa’s editor—she transforms ideas into captivating stories. When she’s not busy turning words into art, you’ll find her vibing to music, exploring tech trends, or reading literally anything. Passionate about technology, music, fashion, and, of course, writing, Lungile adds a fun twist to every project 😁
Author
Diversifying Revenue Streams for Entrepreneurs

Diversifying Revenue Streams for Entrepreneurs

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Lungile Msomi
What is Revenue-Based Financing?

What is Revenue-Based Financing?

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Lungile Msomi
Proving Market Traction for SMEs

Proving Market Traction for SMEs

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Lungile Msomi
Fuel Management for the Logistics and Transport Industry

Fuel Management for the Logistics and Transport Industry

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Lungile Msomi
Warehouse Solutions for SMEs

Warehouse Solutions for SMEs

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Lungile Msomi
How to Build a Resilient Supply Chain

How to Build a Resilient Supply Chain

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Lungile Msomi
The Rise in Fraud: 2026 Trends and Challenges for SMEs

The Rise in Fraud: 2026 Trends and Challenges for SMEs

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Lungile Msomi
merchant cash advance

Cash Advance: A Quick Financing Solution for SMEs

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Lungile Msomi
Unpacking Seed Funding for SMEs in South Africa

Unpacking Seed Funding for SMEs in South Africa

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Lungile Msomi
The Importance of Networking for the Growth of SMEs

The Importance of Networking for the Growth of SMEs

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Lungile Msomi
How to Pitch to Get Your Products on Retail Shelves in South Africa

How to Pitch to Get Your Products on Retail Shelves in South Africa

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Lungile Msomi
How to Set Up an Internship Programme

How to Set Up an Internship Programme

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Lungile Msomi
What You Need to Know about the Second-Hand Goods Act

What You Need to Know about the Second-Hand Goods Act

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Lungile Msomi
Finding a Co-Founder for your SME Is It for Everyone

Finding a Co-Founder for your SME: Is It for Everyone?

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Lungile Msomi
Buying an Existing Social Media Page for your Business

Buying an Existing Social Media Page for your Business

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Lungile Msomi
SME vs Startup

SME vs Startup: How They Differ in South Africa

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Lungile Msomi
Special Economic Zones as a Catalyst for SME Growth

Special Economic Zones as a Catalyst for SME Growth

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Lungile Msomi
The Founder's Test: Investors Don't Back Ideas, but People When it comes to pitching for funding, most founders focus on their pitch decks, the business model and financial projections. And while all these factors are important, investors and funders are also placing emphasis on something else: the founders themselves. This is what is called ‘the Founder’s Test’. What is the Founder's Test? The ‘Founder's Test’ is an informal but important framework that funders use to assess whether a founder is worth backing financially and as a long-term business partner. For small to medium-sized enterprises (SMEs), knowing how to pass this crucial test is the foundation to securing not only capital for the business but also access to markets, long-term partnerships with an experienced network, and building a sustainable business. In this article, we look at the elements of the founder’s test, why it matters and how you can pass it. Key Elements of the Founder’s Test Here are some of the key elements of the ‘founder's test’. 1. Founder-Market Fit Most founders start businesses to solve a unique problem they have identified. Investors will want to see if you (and your team) are uniquely qualified to solve this problem. Key factors are: · Expertise: Does the team have direct, relevant industry experience, technical skills, or past entrepreneurial experience? · Personal Connection: Does the founder have an authentic, personal story related to the problem they are solving? · "Why You?": What unfair advantages (connections, insights, patents) do you have? 2. Resilience and Passion Starting a business is quite challenging. Most funders want to see that the founder can sustain the business for up to ten years. Investors want to see: · Deep Passion/Obsession: Intense curiosity and an obsessive need to solve the specific problem. · Grit: Evidence of handling intense pressure, overcoming roadblocks, and not giving up. · Long-Term Vision: A clear, ambitious vision for the future of the company. 3. Self-Awareness and Coachability Founders must have a good sense of self-awareness and understand what their limitations are. Most investors want to see teachable business owners. Key factors for investors: · Hiring Ability: The ability to attract talent better than themselves. · Handling Feedback: Being open to advice and mentorship while still owning the vision. · Self-Awareness: Knowing team weaknesses and supplementing them with co-founders or advisors. 4. Leadership and Execution Another thing investors want to see is if the founder can plan the business and lead the team to success. Key factors are: · Bias for Action: A strong drive to create momentum, make decisions quickly, and "get things done" without being told. · Selling Ability: Can you sell your story to employees, partners, and investors? · Trust in Others: The ability to delegate and trust team members, rather than doing everything themselves, to enable scaling. 5. Integrity and Cultural Fit Cultural fit and integrity are a critical framework of the test. Investors want to see: · Authenticity: Being honest and transparent in financial models and assumptions. · Confidence, Not Arrogance: A balance of passion and humility In emerging markets like South Africa – and Africa as a whole – the ‘founder’s test’ is usually seen in early-stage businesses. Early-stage investments are about the people behind the business, not just ideas. Founders who succeed are those who can adapt, scale and execute under pressure and ever-changing economic conditions. “Most entrepreneurs are very focused on working in their business and not necessarily on their business. By putting more attention on themselves and the overall direction of the company, they can increase investor confidence,” said Grindstone Ventures CEO Thandiwe Maqetuka. Common Reasons Founders Fail to Impress For all the successful funding stories we hear, there are many founders who did not make it past the first meeting. This is not because their business idea was weak, but because they (founders) could not meet the mark. Here are some reasons why failure is more common than success. 1. Founders Want to Do Everything Themselves One of the biggest traps founders fall into is the belief that they can single-handedly manage every aspect of their business. In the beginning, being independent can seem like the right thing, however, in the future it can lead to some roadblocks: · Trying to save money can cost more in the long run: Trying to do everything alone in the name of saving money can lead to a lot of missed opportunities, slow progress and in some cases costly mistakes. Instead of saving money, they end up sacrificing efficiency and revenue potential. · Constantly juggling roles and priorities: When the mental bandwidth of the founder is stretched, it slows decision-making, stalls productivity and stress snowballs into a long and frustrating cycle. This will affect the business and its potential to make profits. · Too much time goes on the wrong tasks: Answering emails, scheduling meetings, and handling admin may feel productive, but they pull focus from what really drives growth – strategy, innovation, and big-picture decisions. How to Prepare to for the 'Founder’s Test' Passing the ‘founder’s test’ is less about having all the answers, its more about being prepared, honest and strategic. Founders wanting to get past the first investor meeting, should do the following: Be Ready to Explain Founders need to be well-versed in the investor narrative. This means being able to explain why this idea, why now, and why they should back the idea. All these elements should be in the pitch deck and be part of the founder’s vocabulary. Prepare for Questions Investors will ask you hard questions that you need to answer. It’s not about answering them perfectly but rather about the details and preparedness displayed by the founder. When investors ask questions, founders should know that it’s not a bad thing. Typically, it demonstrates that there is genuine interest in the idea. Know the Numbers and the Market One of the most important aspects of pitching for funding is knowing the data that backs up the business idea and what the investor's objectives are. Knowing the market means founders can clearly outline the objectives of the business, its target audience and how it will meet its revenue goals. Additionally, knowing the objectives of the investor means founders can tailor their pitch to focus on what investors are looking for, the returns they expect and the timelines they work on. All these factors together can help any founder pass the ‘founder’s test’. Remember, it’s not only tech-enabled businesses that need to pass this test. Traditional SMEs looking for capital that also comes with access to experts and long-term partners, leading to a business that can scale sustainably.

The Founder’s Test: Investors Don’t Back Ideas, but People

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Lungile Msomi
Getting SETA Accreditation for SMEs

Getting SETA Accreditation for SMEs

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Lungile Msomi
How to Verify if your Wholesaler is Selling Legitimate Products

How to Verify if your Wholesaler is Selling Legitimate Products

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Lungile Msomi
Difference Between Product-Based and Service-Based SMEs

Difference Between Product-Based and Service-Based SMEs

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Lungile Msomi

Circlewise

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Lungile Msomi
Telkom Lending Platform for SMEs

Telkom Lending Platform for SMEs

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Lungile Msomi
Tracking Pixel Tags vs UTM Parameters

Tracking Pixel Tags vs UTM Parameters

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Lungile Msomi
Choosing the Right Digital Business Bank

Choosing the Right Digital Business Bank

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Lungile Msomi
Cross-Border Transactions: What SMEs Need to Know

Cross-Border Transactions: What SMEs Need to Know

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Lungile Msomi
Nedbank Opens Applications for Pitch and Polish Competition

Nedbank Opens Applications for Pitch and Polish Competition

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Lungile Msomi
Revenue Models for SMEs

Revenue Models for SMEs

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Lungile Msomi
POPIA and PAIA: Is There a Difference?

POPIA and PAIA: Is There a Difference?

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Lungile Msomi
Digital Fragmentation The Overlooked Cybersecurity Risk for SMEs

Digital Fragmentation: The Overlooked Cybersecurity Risk for SMEs

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Lungile Msomi
Localisation as a Funding Strategy for SMEs

Localisation as a Funding Strategy for SMEs

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Lungile Msomi
PartnerStack affiliate network

PartnerStack

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Lungile Msomi
How AIEISA Is Helping South African SMEs Turn AI Into Revenue

How AIEISA Is Helping South African SMEs Turn AI Into Revenue

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Lungile Msomi
How to Find Businesses for Sale in South Africa

How to Find Businesses for Sale in South Africa

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Lungile Msomi
Do SMEs Need to Register for VAT or Turnover Tax

Do SMEs Need to Register for VAT or Turnover Tax?

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Lungile Msomi
Key Regulatory Bodies in the Financial Services

Key Regulatory Bodies in the Financial Services

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Lungile Msomi

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