RAFIKI’s Post

🌍 Empowering Real Growth with Substantial Investments in Africa 🌍 I strongly believe that to drive true progress on our continent, we need to focus on raising substantial capital, not just the small, incremental amounts often promoted by NGOs and other "doing-good" organizations. While these efforts are well-intentioned, they often come with high monitoring and evaluation costs that overshadow their impact. To build real, sustainable companies that can make a significant difference, we need to attract and utilize meaningful investments. It's time to shift our approach and ensure that we're providing the financial backing necessary for genuine growth and development. Let's champion real change and create an environment where businesses can thrive with the support they truly need. 💡 #Investment #Growth #SustainableDevelopment #RealChange

This week in tech mafia news we have a special & influential group coming up: The TechCrunch Mafia! Quick stats: 📌 $590M raised 📌 120 companies founded Stay tuned for the full breakdown!

The bigger the story, the more belief you need in it. Most people won’t believe it and that’s why your belief has to be greater. There is plenty of capital out there for founders to build. It’s the belief that’s lacking. In working with founders who have raised over 600 million dollars in capital I’ve seen it firsthand. Huge stories require an almost insane level of belief. Few founders can maintain that level of belief in the face of all the doubters and naysayers. The ones who can, do special things. Keep believing. Never play small. Pull off the unbelievable. #storytelling #venturecapital #growthcapital #capitalraising

Whose company is worth more? So I was having this slight argument with a friend the other day... and I thought it was interesting to share. Company A Raised $100m+, has 100+ employees, and took over 10 years to break even. But for the last few years makes a monthly profit that averages <$5k/month and hasn't really grown. And they don't really have any assets that are of any real value. Company B Is a simple service agency. Raised nothing, has 3 founder/employees, and was profitable immediately to the tune of $10k/month. They're also growing at 50%+ per year. Fact of the matter is... Company B is worth a SHITLOAD more than Company A. Regardless of what the founders of Company A want to deceive themselves into thinking.

Selling a company for $2.5mm should be a win. It should be life-changing money. Raising can be an incredibly powerful tool. But equity isn't cheap. Make sure you consider a variety of funding sources and choose one that aligns with the business plan.

Early-stage investments stood at US$946mn in H1 2024, a decline of 19% from US$1.2bn in H1 2023. However, this is an 8% uptick over H2 2023. Seed-stage financing dropped to US$234mn in H1 2024 from US$407mn in H1 2023 and US$323mn in H2 2023. No new #unicorns were created in H1 2024, as against one in H1 2023. Only three IPOs took place, a decline from seven in H1 2023 and four in H2 2023. Tracxn #southeastasia #startupfunding https://loom.ly/LcHDJBA #e27News

Selling a company for $2.5mm should be a win. It should be life-changing money. Raising can be an incredibly powerful tool. But equity isn't cheap. Make sure you consider a variety of funding sources and choose one that aligns with the business plan.

Talked to a founder whose company is making $2M/year. EBITDA is $400K. She wants to sell, but... She raised $2.5M. The biz would sell for around that, so all $ would go to her investors. Nothing into her bank account. Which means she's STUCK. Raising $ can be smart. But it's not always the best answer. If you raise, you have to sell for so much more to end up with meaningful take-home. Sometimes bootstrapping is a more direct path to a lucrative exit.

My YC batch was remote due to Covid in 2021. That led to 100s of calls with other YC founders. We all had two main issues: 1. Fundraising 2. Growth One affected the other. Without funds it’s difficult to grow. Without growth it’s VERY difficult to raise funds. This is where a well-established personal brand for a founder works like a charm. People trust in people. When trust is established, you can sell whatever you want. You can sell your idea to investors. You can sell your products to customers. Building trust through a strong personal brand will take time, but it is definitely worth it.