Disrupting VC

2 years ago, when tiphub was started, our core team had a couple of initial assumptions that came to be true.

  1. Bootstrapping is important, however majority of disruptive technologies need early capital.
  2. Venture capital is broken. With failure rates that would not be accepted in any other industry, most vc’s continue business as usual. The best ones have found ways to de-risk their investments by leveraging marketing strategies but its not a sustainable model for all vcs in a given ecosystem.
  3. The decision making process for investment selections was purposefully arbitrary. It allows gate keepers to claim a higher power than a regular person at picking companies that have the best chance of success.
  4. Lack of diversity in decision making leads to unequal representation and missed opportunities.

Now, to throw a wrench in it all, bring in the African perspective. Not enough vc activity, not enough opportunities to invest in, not enough capital, etc etc.

The major issue with the private market is that its supposed or destined to be the engine of growth for developed and developing countries alike. However, we don’t have the correct scale-able processes, or institutions in place to really push the needle of investment at scale. The two major problems are;

  1. How do you assess risk in a way that is accurate?
  2. How do you match risk, interest, and expertise to ensure optimal outcomes?

So early on in the inception of tiphub, the idea and the hope was that we would create a platform that would exactly what is missing in the vc community. A platform that could learn, overtime, the best investments for an investor based on different inputs. We called this project tracker.

2 years later, on the anniversary of tiphub, I can say we’ve gotten to the second phase of the tracker which is a platform that will bring together experts, investors, and startups to learn from interactions, and we’ll move on to phase three, where things will start to get really interesting.

Stay tuned as we build what we hope will be a game changing platform that will improve outcomes for all entrepreneurs and investors.

 

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