Impact investors face a startup market that has few acquisitions, fewer IPOs, and is filled with entrepreneurs who liken selling their companies to selling out. How can investors earn a reasonable/market-rate return given these realities? This webinar will share a series of alternative investment structures used to create a return on investment without a traditional exit.
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The buzzword of 2024 is “AI” and like social, mobile, cloud, fintech, and blockchain, every startup is claiming to have it and every big startup fundraising is claiming to expand what can be done with it. Or in short, we’ve been here before. A Grand Unified Theory of the AI Hype Cycle does a very good job explaining how this will play out in 13 steps, and how it already played...
The standard structure for private equity funds (and venture capital funds) is “2&20”, as in a 2% management fee (±1%) and 20% (±10%) of the profits, a.k.a. “carried interest“. Why 20% of the profits? Henry Kravis of KKR explains below, starting at 6:00. TL;DR: Necessity, as he and his partners had no capital to put at risk. Share this:Click to share on Twitter (Opens...
Other people, see things and . . . say ‘Why?’ . . . But I dream things that never were– and I say: ‘Why not?’ – George Bernard Shaw This has shown in my 30+ year career repeatedly. Most recently a few months ago, when pondering the “Missing Middle” of capital for startups in general, and SMEs in Africa specifically. Why? Why is it taking so long for...
Venture capital funds often tout cash-on-cash returns of 2x-3x over 10 years. That is the supposed “norm” for successful funds. But despite the industry being tracked investment by investment in detail, the industry as a whole is notoriously opaque when it comes to the returns of the funds. Thank you to Dan Gray (@credistick) who tweeted the following table, with data from 1981...
Is every investee at Africa Eats and Africa Trees an SME? Are they all small. Are any big enough to be medium? Did the biggest grow beyond SME status last year? Where are the edges to these categories? There is no global authority to answer those questions, but the EU does have a definition that they’ve not only published, but have updated at least once. The boundaries between...
