After securing a seed round of $11.75 million, Terra Industries is urging African startups to prioritize real revenue and problem-solving over headline valuations, warning that sustainable businesses are built on cash flow, not hype.
The Abuja-based defense technology startup founded by brothers Nathaniel Sengu and Maxwell Sengu shared this advice during X Space hosted by Tech This Week, where they reflected on Terra's journey from bootstrapping to one of Africa's largest seed producers.
Nathan Sengu, CEO of Terra, said, “Valuation is an outcome, not a strategy. If you're not solving a real problem and getting paid for it, numbers on paper won't save you.”
revenue before recognition
According to the founders, Terra focused on securing paying customers and providing measurable value long before raising external capital. The company said it earned more than $2.5 million in commercial revenue by securing privately owned infrastructure assets, allowing it to build operational credibility without waiting for investor validation.
“For a long time, we didn't fit into the typical enterprise narrative. We weren't loud, we weren't flashy, but we were shipping products and collecting revenue,” Nathan said.
This strategy, he added, gave Terra an advantage when it finally entered fundraising talks.
solving difficult problems
Maxwell Sengu, Terra's chief technology officer and former naval officer, said many African startups underestimate the importance of tackling tough, infrastructure-level problems.
He said, “Easy problems attract fast attention, but hard problems create lasting companies. If you can build something that people really depend on, the revenue will follow.”
Terra's focus on security infrastructure, often seen as a capital-intensive and high-risk area, means longer sales cycles but stronger customer commitment once a contract is secured.
Funding is a tool, not a goal
The founders cautioned that raising capital too early could distract startups from building a solid foundation.
Maxwell said, “Money amplifies everything you are. If the fundamentals are weak, funding only makes the cracks bigger.”
He 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 facing 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 change. If people are paying for what you're building, you'll be left out of a lot of the market noise,” Nathan said.
From revenue to scale
With the new capital in hand, Terra says it is now applying the same revenue-first discipline to its expansion plans, which include increasing local manufacturing, upgrading its Artemis OS platform, and expanding into new African markets.
Nathan said, “Our approach won't change because we raised money. The mission is still the same: build real solutions, earn trust, and grow from there.”
As Terra transforms from a revenue-supported startup to a large defense technology firm, its message to Africa's next generation of founders is clear: build something valuable first, valuation will come later.
