Terra Industries to African startups: Build revenue before chasing valuation

Fresh from securing a $11.75 million seed round, Terra Industries is urging African startups to prioritise real revenue and problem-solving over headline valuations, warning that sustainable businesses are built on cash flow, not hype.

The Abuja-based defence technology startup, founded by brothers Nathaniel Sengu and Maxwell Sengu, shared this advice during an X Space organised by Tech This Week, where they reflected on Terra’s journey from bootstrapping to one of Africa’s largest seed raises.

“Valuation is a consequence, not a strategy. If you are not solving a real problem and getting paid for it, the numbers on paper won’t save you,” said Nathan Sengu, Terra’s chief executive officer.

Revenue before recognition

According to the founders, Terra focused on securing paying customers and delivering measurable value long before raising external capital. The company said it generated over $2.5 million in commercial revenue by protecting privately owned infrastructure assets, allowing it to build operational credibility without waiting for investor validation.

“For a long time, we didn’t fit the typical venture narrative. We weren’t loud, we weren’t flashy, but we were shipping products and collecting revenue,” Nathan said.

The strategy, he added, gave Terra leverage when it eventually entered fundraising conversations.

Solving hard Problems

Maxwell Sengu, Terra’s chief technology officer and a former naval officer, said many African startups underestimate the importance of tackling difficult, infrastructure-level problems.

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“Easy problems attract fast attention, but hard problems create lasting companies. If you can build something people truly depend on, revenue will follow,” he said.

Terra’s focus on security infrastructure, often seen as a capital-intensive and high-risk sector, meant longer sales cycles but stronger customer commitment once contracts were secured.

Funding is a tool, not the goal

The founders cautioned that raising capital too early can distract startups from building solid foundations.

“Money amplifies whatever you already are. If the fundamentals are weak, funding only makes the cracks bigger,” Maxwell said.

They advised early-stage founders to view fundraising as a means to scale proven models, not as validation of an untested idea.

Lessons for Africa’s startup ecosystem

Terra’s advice comes at a time when African startups are navigating tighter funding conditions and increased investor scrutiny. The founders said this shift presents an opportunity for more disciplined, impact-driven entrepreneurship.

“Capital cycles change. But customers don’t. If people are paying for what you’ve built, you’re insulated from a lot of market noise,” Nathan said.

From revenue to scale

With fresh capital in hand, Terra says it is now applying the same revenue-first discipline to its expansion plans, which include scaling local manufacturing, upgrading its Artemis OS platform and expanding into new African markets.

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“Our approach won’t change because we raised money. The mission is still the same: build real solutions, earn trust, and grow from there,” Nathan said.

As Terra transitions from a revenue-backed startup to a scaling defence technology firm, its message to Africa’s next generation of founders is clear: build something valuable first, valuation will come later.

Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.

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