About the history of venture and the role this asset class can play in Africa

1. Venture Capital By Dr Ola Brown

2. What is
Venture
Capital?
• Venture capital is a form of private equity and a type of financing
that investors provide to startup companies and small businesses
that are believed to have long-term growth potential. Venture
capital generally comes from well-off investors, investment banks
and any other financial institutions. However, it does not always
take a monetary form; it can also be provided in the form of
technical or managerial expertise. Venture capital is typically
allocated to small companies with exceptional growth potential, or
to companies that have grown quickly and appear poised to
continue to expand.
• Though it can be risky for investors who put up funds, the potential
for above-average returns is an attractive payoff. For new
companies or ventures that have a limited operating history (under
two years), venture capital funding is increasingly becoming a
popular – even essential – source for raising capital, especially if
they lack access to capital markets, bank loans or other debt
instruments.
Source: Investopedia

3. History of Venture
Capital
• In its early years through to roughly the year 2000,
the private equity and venture capital asset classes
were primarily active in the United States
• In its early years through to roughly the year 2000,
the private equity and venture capital asset classes
were primarily active in the United States
• American Research and Development Corporation.
(ARDC) and J.H. Whitney & Company in 1946

4. Venture Capital In
Africa
• Imu-Ahia, referring to an
Igbo apprenticeship system
which gained prominence in
the Eastern region after the
Civil War of 1967
• $4bn turnover
• Largest business incubator
in the world

5. Famous Venture
Capital Companies
• Yahoo, Google, youtube,
Zappos, Linkedin, Whatsapp,
Oracle, Airbnb, Apple, Zoom,
Instagram, paypal
• They partner early
• Companies are valued at
$3.3tr
• Built an era of technology and
innovation in America

6. The Start Up
Nation
The Start-ups and the venture
funds the supported them
were an intrinsic part of
Israel's economic miracle
Israel—a country of 7.1 million
people, only sixty years old,
surrounded by enemies, in a
constant state of war since its
founding, with no natural
resources—produces more
start-up companies than large,
peaceful, and stable nations
like Japan, China, India, Korea,
Canada, and the United
Kingdom?

7. Meanwhile in Africa………

8. Why Venture Capital
will determine
Africa’s future

9. Technology
Technology
Technology

10. Software is eating the world
• Young
• 90m in extreme poverty
• According to the World Bank, more than 500
million people were lifted out of extreme
poverty as China’s poverty rate fell from 88
percent in 1981 to 6.5 percent in 2012!!
• China did it by making cheap ‘hardware”:
clothes, shoes, house hold items and
machines
• We MUST do it by making software

11. So what do I want you people to do?
• Young people: We have been to quiet. Write to you local politicians, write in your local newspapers,
raise your voice at town hall meetings, use your social media
• Policy-Makers: Start up acts, broad band access, red tape, B2G opportunities, enabling policies e.g
tax, invest in education/skills
• Media: Write about it, focus on it
• International AID/NGO organizations: You built your own economies from doing business, but
somehow you want us to build our economies from aid. Its not possible.
We must concentrate on the creation on wealth, rather than the alleviation of poverty.
And please I beg you don’t try to do it yourself. Don’t be afraid of trusting and investing in people
you are trying to help.

12. I am beginning to dislike to the term ‘economic
miracle’. Lazarus rising from the dead was a
miracle. Jesus changing water to wine was a
miracle.
Rapid economic growth has happened in South
Korea, Japan, Israel, Brazil, Germany, Estonia,
Singapore. Its not a miracle. Its just discipline.
-Dr Ola Brown
• Everything we do in the next few decades will be
defined by technology. Technology holds the
potential to lift hundreds of millions of people
out of poverty.
• Venture capital as an asset class, the fund
mangers with operational expertise/experience
and deep relationships and the heroes of
growth; FOUNDERS will be at the center of this
growth.