Abuja-based Terra Industries, a defence technology startup, is sending a clear message to Africa’s budding entrepreneurs: focus on real revenue before chasing lofty valuations. Fresh off an $11.75 million seed round, founders Nathaniel and Maxwell Sengu emphasized that sustainable businesses grow from cash flow and problem-solving, not hype. Speaking during an X Space hosted by Tech This Week, they reflected on Terra’s journey from bootstrapping to one of Africa’s largest seed raises.
“Valuation is a consequence, not a strategy,” said Nathan Sengu, CEO of Terra. “If you’re not solving a real problem and getting paid for it, the numbers on paper won’t save you.” Terra built its credibility by prioritizing paying customers and measurable value, generating over $2.5 million in commercial revenue while protecting privately owned infrastructure assets—long before approaching investors.
Maxwell Sengu, CTO and former naval officer, stressed the importance of tackling hard problems. He noted that while easy challenges may attract attention, it’s the complex, infrastructure-level issues that create lasting companies. Terra’s focus on security infrastructure meant longer sales cycles but stronger customer commitments, proving that tackling difficult sectors can drive sustainable growth and reliable revenue.
The founders also warned against raising capital too early. “Money amplifies whatever you already are. If the fundamentals are weak, funding only makes the cracks bigger,” Maxwell said. They urged early-stage founders to view fundraising as a tool to scale proven business models, not as validation for untested ideas—a perspective increasingly relevant as African startups face tighter funding conditions and heightened investor scrutiny.
With fresh capital in hand, Terra is now scaling its operations while keeping revenue-first principles intact. Plans include expanding local manufacturing, upgrading its Artemis OS platform, and entering new African markets. Nathan Sengu reinforced the message to the continent’s next generation of founders: “Build something valuable first, earn trust, and the valuation will follow.” Terra’s disciplined, revenue-focused approach is being positioned as a blueprint for Africa’s startup ecosystem.
source: Business day