A millionaire was made from a London's poorest neighborhood by selling an influencer marketing firm at the age of 29.

Despite facing challenges, Timothy Armoo, a 29-year-old Black entrepreneur, overcame obstacles to become a millionaire by selling his influencer marketing firm for a substantial sum.

As a teenager, Armoo, the co-founder and former CEO of Fanbytes, resided with his dad on a fourth floor council estate - public housing - in Old Kent Road, Southwark, which was once one of the poorest areas in south London.

"Armoo revealed to CNBC Make It in an interview that Peckham, Brixton, and Old Kent Road were experiencing their conflict, or gang warfare, during the peak of the South London gangs from 2005 to 2012."

Southwark is among the 19 boroughs in England with "significantly" higher levels of poverty, according to Trust for London.

At 14 years old, Armoo, who was aware of his poverty, established a tutoring business and made some money through his entrepreneurial spirit.

As more students sought his help with subjects other than math, he began connecting them with tutors he knew and pocketed a portion of the fee.

"He stated that he vividly recalled the first instance of linking two individuals, Jane requiring assistance with chemistry, and Harry providing help, resulting in a £5 commission for him, as the business charged £15 per hour."

When Armoo received a scholarship to attend a private boarding school at age 16 to complete his A-Levels, equivalent to the Advanced Placement program in the U.S., his perspective on wealth underwent a significant shift.

"He recalled that day when a kid was picked up in a helicopter, which opened his eyes to the possibility of building wealth without being Richard Branson. He realized that there was a whole world of people in between those two extremes."

He came to the conclusion that "money is a tool" to improve his life and the quickest route out of poverty was to establish his own enterprise.

"As a child growing up on the fourth floor council estate, I would often repeat to myself, 'This is temporary. This is temporary. This is temporary,'" he said. "Although I had no control over the circumstances I faced at 10 years old, I was able to choose my own outcome."

Before the age of 30, Armoo went from living in a council estate to starting his own business and eventually becoming a millionaire.

Your first business doesn't need to be a 'billion dollar idea'

At 17 years old, Armoo was still finishing his A-Levels when he sold his first business, Entrepreneur Express, for £110,000 after just 11 months of operation.

"My aspiration was to make money and escape my difficult circumstances, while others dreamed of attending Oxbridge," Armoo stated.

Despite interviewing high-profile figures such as Richard Branson, Alan Sugar, and James Caan for Entrepreneur Express, making the blog profitable proved to be a challenge.

As the deadline approached, he realized that he lacked sufficient advertising to sustain the print publication of his blog, which he initially intended to share with university society groups.

He found success by placing advertisements on his online blog.

He claimed that his "hack" involved distributing blog content through viral social media accounts on Instagram and Facebook, such as meme pages and feel-good quote pages.

Armoo would create social media posts with a hook like "10 quotes to inspire you" and this would lead people to his website.

"We made money through two methods: programmatic advertising, which involved banner ads, and selling sponsored slots to tax, law, and accountancy firms for direct ROI."

Armoo advised that your initial business doesn't have to be a "billion-dollar idea." Instead, it should help you climb the first rung of the financial ladder.

He mirrored the advice of the deceased investment magnate Charlie Munger, who stated that earning the initial $100,000 is the most challenging task, yet it must be accomplished.

Armoo agreed, stating that optimizing for the initial £100,000 would make life easier because it would provide a financial cushion to make less risky choices.

"You build wealth by selling the business"

Fanbytes, co-founded by Armoo, Ambrose Cooke, and Mitchell Fasanya in 2017, is an influencer marketing firm that Armoo considers himself an early pioneer in the burgeoning creator economy industry.

Fanbytes aimed to bridge the gap between brands and influencers, enabling them to collaborate on advertising campaigns that were gaining traction during the shift from conventional advertising to social media influencer marketing.

Fanbytes secured a significant client list from Nike, Samsung, Amazon, and ITV, according to Armoo.

Influencer marketing on social media was 11 times more effective than banner ads on a website, as found in a 2016 study by TapInfluence. This is why brands were increasingly turning to influencers, as reported by CNBC.

Armoo observed the emergence of influencer marketing in the U.S. and subsequently decided to replicate the concept in the U.K.

Instead of inventing something new, entrepreneurs can "service existing demand," advised Armoo.

The company raised £2 million in funding after gradually accumulating small amounts of funding across different stages.

Armoo stated that their first investment was $15,000, followed by $40,000, $120,000, $300,000, and finally $600,000.

In 2021, his work with Fanbytes earned him a spot on the Forbes 30 Under 30 list, and shortly after, he began receiving offers from individuals interested in purchasing Fanbytes.

He subsequently appointed a bank to manage transactions for the company, resulting in six companies expressing interest in acquiring Fanbytes.

In May 2022, Armoo and his co-founders sold Fanbytes to Brainlabs, a global digital marketing agency, in an eight-figure deal, making them all multi-millionaires.

"Armoo stated that the objective was always to create something that could be sold. He shared this with a person early in his journey, who emphasized that it is possible to generate income while running a business, but true wealth is gained by selling the business."

Fanbytes was never the long-term goal for Armoo.

"If I believed that Fanbytes was building a business with the ultimate goal of achieving financial security, I would still be passionate about it, even if it involved selling shoelaces to frogs," he stated.

'I never saw myself as a Black entrepreneur'

Despite the challenges, Black founders continue to persevere in securing funding for their startups. In 2023, Black-founded startups in the U.S. received only 0.48% of all venture dollars allocated, according to Crunchbase data reported by CNBC.

Since the murder of George Floyd and the subsequent social justice movement, funding for Black-owned businesses has decreased.

A study by Atomico found that 87% of non-white founders reported facing more barriers to fundraising than 79% of white founders, according to the State of European Tech Report 2023.

Armoo believed that having a different perspective and not viewing being Black as a hindrance were key factors in his success.

The bearded Black guy in a room full of white people was remembered by everyone. This experience made him more memorable for me, as it was a reminder of how important it is to stand out in a diverse crowd.

You can either feel insecure when entering a room because there aren't many people who resemble you or use that factor to make you stand out.

He stated that he never viewed himself as a Black entrepreneur, but rather simply as an entrepreneur.

"Perhaps, I am too logical for my own benefit. I thought, "Investors want to make money, and this business will make them money. I will demonstrate how it does so." That was it; I didn't consider if it was coming from a white or Black person."

As a 29-year-old millionaire, Armoo believes that his worldview has served him well.