Welcome back once again for today’s episode in the #100daysofVC series.
For today, we’ll do a short discussion on why we need to give a damn about venture capital.
I promise to make it brief, It’s not gonna be intensive.
So, let’s jump right in……
A lot of people in the ecosystem have ideas and like many people will say,Â
Ideas are worth nothing more than a penny.Â
It takes a lot to turn a great idea into a viable and profitable business. One key factor on this path to success for many is venture capital (VC).
Permit me to explain this with an analogy…….
So, let’s say Uche discovered a problem he feels he can solve and hooks up with a few friends to build a solution around it, after months of iterations, they finally build a product they are convinced without any doubt is ripe for the market, they launch and start getting traction.
But, in other for them to grow, they need to raise funding and doing this will make them give out a piece of their ownership(equity) to the people willing to fund them(investors).
I hope this explains in what VC entails in a concise manner?.
The truth is most startups do a lot of things to discover and test for the most pivotal business model.
The ones that raise, do so because they believe funds will give them speed to iterate, test and figure the most pivotal business model to attain profitability.
Yeah, that’s the point, and this is the preview of the journey we about to undertake, the journey to immerse ourselves and understand the rudiments of venture capital, it’s importance to us as creators and it’s impact in emerging markets.
So stay on track and put on your seat belt because the journey is about to get more interesting.
See you in the next episode.