Intro to Venture Capital?
So I am deeply interested in the Venture Capital world and investing in visionary entrepreneurs that can transform the world specifically on the African continent.
However, I guess they are many people who will wish to learn more about what Venture Capital world so I will try to provide a Venture Capital 101 lesson in this article:
First, Venture capital is a private capital market. Private capital market is simply capital that doesn't come from institutional sources this includes governments, banks, or stock markets.
Second, Venture Capital funding is specifically geared on allocating capital for very early-stage entrepreneurs in some cases those who just still "ideation" phase. However, the team has to be solid and have a "very clear" understanding of the industry and market.
Third, Venture Capital as a source of investment is a long term one. You need to be looking in the long-term approximately 5-10 years to obtain your return on "invested capital."
Fourth, Venture Capital firms are generally structured with Managing or General Partner(s) and Limited Partner(s). The Managing Partner (s) is/are usually in charge of of "managing the fund" and allocating the capital raised to the specific entrepreneurs. The limited Partners provide the capital in the funds but they do not have any control over the day to day operations or decision-making processes in that specific firm.
(From Harvard Business Review: How Venture Capital Works)
So, this is just an introduction about Venture Capital, and I will do some follow-up blogs to go into to more specifics and about our fund, Jamani Ventures.
As always please let me know if you have any questions, and I am looking forward to hearing from you. I am also welcome to suggestions, and if there is anything that you're interested to allow me share about my writing experience .
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