Why I Write About Venture Capital (And Why It Matters to Me)

Understanding VC from a Global and Personal Lens

Venture capital (VC) isn’t just a headline-grabbing financial concept to me—it’s the work I do every day. Over the past several years, I’ve had the chance to work in VC and private equity across markets—from emerging African ecosystems to more mature ones—and I’ve seen firsthand how transformative this industry can be.

But despite its global reach and growing importance, venture capital is still often misunderstood. People hear “VC” and think Silicon Valley billionaires or Shark Tank-style pitches. In reality, it’s more nuanced, especially when you look at how it operates across different regions and cultures.

This post is my attempt to break down venture capital at a high level—what it is, how it works, why it matters, and why I care about it. Especially as I continue to focus my work on early-stage investing in Africa, I believe it’s worth demystifying VC from a global lens.

What is Venture Capital?

Venture capital is a form of private equity investment that provides funding to early-stage, high-potential startups. Unlike traditional bank loans, VC funding is typically exchanged for equity—meaning investors take partial ownership of the company, hoping for future returns when the startup scales or exits (through acquisition or IPO).

Where Does the Money Come From?

VC firms manage funds pooled from institutional investors, high-net-worth individuals, and sometimes government-backed initiatives. Their goal: identify promising startups, provide financial and strategic support, and exit with strong returns.

Startups vs. SMEs: Two Very Different Beasts

A common misconception I’ve encountered in conversations—especially in emerging markets—is that startups and small/medium enterprises (SMEs) are the same. But they approach growth quite differently:

Startups are designed for rapid, often global scale. They usually rely on external capital to grow fast and take big swings.
SMEs, on the other hand, focus more on profitability and sustainability. They tend to be bootstrapped or funded through traditional bank financing.

The Global Evolution of VC

While VC’s origins are most closely associated with Silicon Valley, its impact is now undeniably global.

United States: Still the epicenter, where firms like Sequoia and Andreessen Horowitz fuel some of the world’s biggest tech stories.
China: Home to explosive growth, particularly in AI, fintech, and e-commerce. Think Alibaba and ByteDance.
Europe: More conservative historically, but gaining momentum in fintech, deep tech, and climate innovation.
India & Southeast Asia: Emerging powerhouses with strong consumer tech ecosystems.
Africa: A rising frontier. In my work here, I see immense potential—but also unique structural challenges. (More on this in future posts.)

How VC Works (Simplified)

1. Pre-Seed & Seed Stage
Early days. Startups are still finding their footing, validating their ideas, and building MVPs. This is where I focus much of my time—especially in African markets—working with founders who are trying to turn vision into traction. I’ll share more about this especially since I work with start-ups that typically already have customers, revenues, and good traction.

2. Series A & B
Startups refine their models, build teams, and expand customer acquisition.

3. Growth Stage (Series C+)
Companies scale aggressively and begin preparing for acquisition or IPO.

4. Exit
Investors cash out—ideally with strong returns—through a sale, merger, or IPO.

Why It Matters

If not for VC, we likely wouldn’t have companies like Google, Airbnb, or Zoom. Venture capital has played a pivotal role in shaping the modern digital economy. But beyond tech giants, VC can empower visionaries with bold ideas—especially in places where traditional funding is hard to access.

For founders, VC isn’t just about money. It’s about having someone in your corner—offering advice, networks, and support when things get tough (and they do).

The Flip Side: VC Isn’t Perfect

Like any industry, VC has its limitations:

High failure rates: Most startups fail.
Short-termism: Pressure for fast returns can lead to unsustainable growth strategies.
Funding gaps: Underrepresented founders and those in emerging markets often struggle to access capital.

Nothing is perfect. But that doesn’t mean it’s not worth improving.

A Personal Perspective

When I started my career, I didn’t plan to end up in VC. But over time, I was drawn to the blend of strategy, risk, and potential impact—especially in emerging markets.

In Africa, VC is not about copy-pasting Silicon Valley models. It’s about understanding deeply local contexts. Each country has its own regulatory hurdles, cultural nuances, and economic realities. But the entrepreneurial energy? That’s everywhere.

This is the kind of work that excites me—supporting founders who are building bold, contextually relevant solutions. It’s not easy, but it’s meaningful.

What’s Next

This post is just the beginning. In the next part of this series, I’ll explore how VC is evolving in Africa: what makes it unique, where the real opportunities lie, and what challenges we need to address to unlock long-term growth.

In the meantime, I’d love to hear from others:
What has your experience been with VC—especially in emerging markets? What do you think needs to change?

Let’s keep the conversation going.

A journey from the late 80's in Africa till now