Ory Okolloh’s observation that it’s more effective to front with a white face when looking for VC — which has gathered a fair amount of Twitter corroboration, by the way — is obviously what inspired the following 140 xter flood by Iyin on how to raise venture capital as a Nigerian/African founder.
By itself, Ory’s tweet is a stringy piece of meat that African technorati on Twitter will still be chewing on a few days hence. But a tweet “rant” about raising VC, local and foreign, by around 4:30 am, Nigerian time, is a terrible thing to waste. Totally up to you what you choose to agree with and what to not.
hmm.. just reading @kenyanpundit observation about needing Oyinbo to raise money. I hate to be *that guy* but @JumiaNigeria did it.
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Here is my advice for Nigerian/African founders from what I've seen/heard so far re raising money..
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
First, understand most of the people you will pitch to are not convinced/don't really care about your business..
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
If they have done this for a few years, their default assumption is they'll probably not make money. FYI
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Whether you get funding or not has nothing to do with your business or how great your idea or execution chops is.
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
It 100% has to do with you. Nothing else.
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Do whatever you can (except lie) to make the other person feel comfortable giving you their money. #dazall
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Half the battle is who introduces you. Try not to have to cold email.
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
But do if you must.
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Always start with the connection you have in common.
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
It also helps if you have studied in a school they recognize (i.e a top 100 rankings school).
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
If you are Nigerian, a founder from a top 100 school will probably help you better than an oyinbo will.
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Double + if you get a Harvard Business School co-founder.
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Sadly, I think this is a pretty stupid pattern matching formula. But it is what it is..
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
If you can get some foreigners to invest, the Nigerian guys might take you more seriously..:)
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Work experience matters. The right kind of work experience matters even more.
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Ex-googler, ex-Goldman, ex-McKinsey, ex-Facebook..etc You get the money.
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Ex-Okoro and Sons – even if it is the exact same biz and you were GM. nada
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Age matters. Try to hide your age when you pitch. Keep your beard on. Might help to whiten it a bit 🙂
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Sweet spot for investment is late 20's, early 30's. fresh out of school? Nothing for you..
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
If you have the means to raise seed from foreign investors. Do. But be very generous with equity. Like very.
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Know your numbers. How will you scale+ how much money can you make on exit? This ain't no silicon valley..
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013
Finally, keep your ask reasonable. Good luck!
— Iyinoluwa Aboyeji (@iaboyeji) June 18, 2013