5 things to know before investing in a startup (Infographic)

A total of 125 African tech startups attracted $185-million in funding in 2015, according to a new report, which shows there is significant funding in solar, fintech and ecommerce projects. Because it can be difficult to obtain financing from big investors, small-business entrepreneurs often turn to friends, family or acquaintances for funding.

If you find yourself with the opportunity to invest in a business startup, exercise a healthy degree of caution. Take the time to learn a bit about the type of business you are looking at. It helps if you have some background in the type of venture being considered.

Check out the infographic below for a brief outline of what to consider when thinking about investing in a startup.