What local VC firm would you pitch to if you’re running a profitable startup with traction?
The way these things usually go, few people pitch to a small list.
After all, the plan is to lie on a bed of term sheets and pick the most favourable which has partners without the wrong moustache (or whatever unexplained vibe you don’t appreciate).
So, all of them?
@stigwue I dey gbadun your vibes OGA MI.
Nice one . But if there’s an opportunity to be choosy, who’s it going to be?
@tage For me i have never pitched before but i remember 3 years ago i once had an idea which was great.
I approached a wealthy man and we talked about it. He was really interested.
But the he told me that he would discuss it with his wife and get back to me.
When i didnt hear from him i concluded that likely his wife discouraged him.
1 year later i saw my idea on internet.
I felt bad.
I called him. He declined all my call.
It was really painful.
Today they live in a newly built house because the bizness is doing fine.
I hate talking about it but i promise myself never to pitch without a signed agreement.
Sad. Having no details about it, be consoled that ideas are a dime a dozen, execution is golden.
Also, Persistence. It’s like asking someone out. If you think they’re right for you, you shouldn’t stop until you get a clear no (most VCs will never give you one, they’ll just find other ways to keep the door open).
A few pointers for @tage:
Benefits. What do they bring besides the money (which all of them are offering)? Expertise/experience in the sector? Ability to link you up to new deals? Help with govt/regulation? Already invested in someone you hope will acqui-hire you?
Again, bringing up the similarities between it and marriage/relationships: a poll was taken, asking men about the qualities they desired in a spouse and what qualities they desired in their daughters. The data skewed towards the best case scenario for spouses and the worst case for daughters.
E.g you’ll want a VC who’s awesome at what they do and have some seats on the board to help guide you and for the worse cases, you want one that you can drop without much of a fight/vote. See?
So, if your thing is in Lagos (and non-virtual), you should get some connection to the, erm, I struggle not to use the word “mafia” but… I failed.
It is really sad when these things happen.
We are in such a low-trust society and it is because of such things. In other climes, an NDA before a pitch will be offensive, but here, you gotta protect yourself.
Lmao the last part got me. I knew of those benefits you stated but not the ‘acqui-hire’ one. Excellent insights chief.
@kingsley_aghedo I sympathise with you man, sad stuff. We all learn from mistakes. Hopefully, you’ll have better ideas and yeah, like you said, pitch them with a signed agreement .
I have tons of ideas. Its a gift.
I know sooner than i expect i will get an investor to pitch my ideas to.
Thanks for the advice @tage
Thats the spirit. You’re welcome chief.
It might help to pitch actual businesses than ideas. Increases the probability of favourable outcomes and many (most?) VCs in these parts won’t consider ideas as there isn’t that much money available (relative to other parts of the world).
But isn’t funds needed to turn ideas to businesses? Where will budding co-founders get funds to finance their idea and turn it into a business when VC won’t consider their ideas unless it’s a business. That’s not good
That’s one of the chicken and egg problems that have to solved when building businesses.
In the VCs’ opinion that’s the founder’s problem, not theirs.
Hmmm. Becoming a founder in this part of the world no be small thing
Founders should first take responsibility by starting something to showcase what they are capable of.
For instance most employers won’t employ an employee if he/she doesnt have experience included in their resumè.
The same thing applies to VC’s they want to see something tangible before they VENTURE into such business.
I recommend starting a blog for founders. Its cheap and you can sell your ideas to any one.
Once you gather traction VC’s will look for you definately.
Yeah. You raised some good points
Can anyone please point me to a link/resource with a list of local VC’s ?
Man, I haven’t seen any list floating around but everyone seems to know everyone in that space. Look at any Nigerian company you’ve heard of or admire, there’s probably a few of them in one of the rounds (might have to dig into Crunchbase for details).
I sense nobody’s sharing…I could be wrong sha but our tech space too get cabal o!! a toxic one at that…