Thanks so much for sharing this perspective. Can be hard to see when you're deep in the trenches of fundraising (both as GPs and founders). Ultimately, we do need to bridge that later stage 'local' LP funding gap which will help us get a lot more realistic valuations that generate more paths to good exits and creates more founder-to-funder folks like Ayo at Velocity.
A very brilliant article. It reminds me of a question someone asked a panel at Moonshot by TC last year on why VCs focused only on tech startups, and a panellist explained how the Nigerian finance scene is plagued by shallow pools of capital, and everyone is looking at VCs to fund every kind of thing, which just isn't possible. And like you have explained, the little amount of capital will go to where ideas are proven to work, and yet, they have even gone beyond that to fund relatively moonshot ideas that have not worked, and done it again. Hopefully, we get more funding from banks and pension funds, so VCs can be more audacious.
Sadly, until we get regulatory clarity and some form of market liberalisation, banks and pension funds will keep masking their non-participation in these markets under the umbrella of regulation.
Thanks so much for sharing this perspective. Can be hard to see when you're deep in the trenches of fundraising (both as GPs and founders). Ultimately, we do need to bridge that later stage 'local' LP funding gap which will help us get a lot more realistic valuations that generate more paths to good exits and creates more founder-to-funder folks like Ayo at Velocity.
Best thing I've read this week.
Thank you for always leaving a comment when you find the newsletter interesting. I appreciate it!
Excellent article. Well done 👏🏾
backing flutterwave before tiger global showed up is the whole job!
Finally something I enjoyed reading.
A very brilliant article. It reminds me of a question someone asked a panel at Moonshot by TC last year on why VCs focused only on tech startups, and a panellist explained how the Nigerian finance scene is plagued by shallow pools of capital, and everyone is looking at VCs to fund every kind of thing, which just isn't possible. And like you have explained, the little amount of capital will go to where ideas are proven to work, and yet, they have even gone beyond that to fund relatively moonshot ideas that have not worked, and done it again. Hopefully, we get more funding from banks and pension funds, so VCs can be more audacious.
Sadly, until we get regulatory clarity and some form of market liberalisation, banks and pension funds will keep masking their non-participation in these markets under the umbrella of regulation.
Sadly true.
Insightful read!
This is such a good read! 🫡
Incredibly insightful.
Whoosh! I have to comment on this one! Thank you for such a thoughtful treatise🤌