Eva Warigia: Be mindful of your network, it is the base of your success
Eva Warigia is a jack of many trades with a passion for Africans and their economic advancement. As one half of the executive directing team of the East Africa Venture Capitalists Association, representing over sixty firms, she uses her knowledge of finance and strategy to position East Africa as a thriving investment hub. In this interview, she talks about her leadership position, and how she’s working with stakeholders to promote investment in East Africa. At what point in your life did you first learn about your field of work and what drew you to it? I probably came across private equity in 2011. At the time I worked for a technology and corporate advisory firm as a strategy analyst focusing on helping businesses fundraise. It was there that I got to interact with the different structures of funding. [bctt tweet=”My docket as one half of the leadership of EAVCA is in leading the advocacy and intelligence – @eva_hawa” username=”SheLeadsAfrica”] You are one of the two executive directors of the East African Venture Capitalists Association (EAVCA) what exactly do you do? EAVCA is a member association for private equity and venture capital firms who are interested in deploying capital in East Africa. As a trade organization, we represent the interests of member firms deploying private capital in the region, which constitutes Ethiopia, Uganda, Rwanda, Kenya, and Tanzania. We are the interface between the region’s stakeholders, the general public and the investors. Our activities largely involve advocacy for the private capital sector, research, and intelligence for investors considering the region for investment. Being the foremost networking platform for East Africa to advance thought leadership in the PE and VC space, and finally, conducting training for the sector. We also nurture the local professionals, as well as building awareness with the sector stakeholders. My docket as one half of the leadership of EAVCA is in leading the advocacy and intelligence. This entails working with the sector stakeholders to create partnerships that promote investment inflows in East Africa.Internationally, less than 10% of venture capital funds go to female entrepreneurs. Is this situation just as bleak in East Africa? This is also the case in East Africa. There was a time when female-led enterprises were not as visible as they are now, especially on the funding front. Emerging trends for conscious investment (particularly gender lens investing) mean that the tide is slowly turning to acknowledge that female-led enterprises are equally lucrative. Furthermore, women are more deliberate in their business planning and less likely to take investment capital for personal use. What does EAVCA do to ensure that besides women-owned businesses there is diversity in general in businesses being considered for funding? From 2018, EAVCA became more deliberate in local engagement by working with trade associations, incubators and accelerators to grow local awareness of PE and VC as alternative sources of capital. We are also ensuring we carry out industry-specific research showcasing opportunities that exist in East Africa. One such research was on the opportunities available for fin-tech investing in East Africa, which we launched in March this year. This allows investors deeper access to sectors that have probably been on their radar but whose information may be hard to come by. [bctt tweet=”I think it is important for technical entrepreneurs to find partners who will help them with the business side of their enterprise or product – @eva_hawa” username=”SheLeadsAfrica”] What are some of the mistakes you have seen female entrepreneurs make while interacting with venture capitalists, and what can they do to better pitch their businesses to investors? While I would not categorize this as a mistake, I think it is important for technical entrepreneurs to find partners who will help them with the business side of their enterprise or product. Far too many entrepreneurs are struggling to raise capital by themselves without the tools or skills to approach this. Thankfully, there are programmes and incubators that equip entrepreneurs with the skills needed to begin thinking of their vision as a commercial venture. There is quite an array of accelerators available for African entrepreneurs such as MEST Africa which is available in Ghana, Nigeria, South Africa, Kenya, and Cote d’ Ivoire or Growth Africa for East Africans. There are also institution backed programmes like the Trade and Investment Hub (the Hub) by USAID, which is available in East, West and South Africa, or the Stanford Seed Transformation Programme in Ghana and Kenya. Finally, we have philanthropy backed incubators also committing to support the initiative by Africa’s entrepreneurs such as the Tony Elumelu Foundation or Africa Netpreneur Prize by the Jack Ma Foundation. EAVCA has been led by women from its inception. Can we interpret that to mean Africa doesn’t share the same discouraging international statistics when it comes to women’s leadership in VC firms? As an association, we are privileged to have women as the champions of the industry in East Africa. For the VC and PE funds, the bulk of fund managers are still led by men although we have a growing number of women taking up that space. I believe it is important for women to support each other in male-dominated industries such as ours and share their journeys so that we can all learn from each other. How has working at EAVCA changed your perception of Africa’s potential to be an economic and innovation hub in the future? I have always been an Afro-optimist and firmly believe in Africa’s value and ability to influence the future! Working with EAVCA has furthered my confidence in our potential as a continent. I interact each day with people who are as passionate about Africa as I am and who are effecting positive change within their different spheres. I am able to see how it is all shaping out from my bird’s eye view at the Association and it just fuels me to want to do more! What is the favorite part of your job? Every day, I meet people that are clear about
10 things I learned about pitching to an investor
She Leads Africa recently had a free webinar session with Andrea Barrica on the fundamentals of pitching your business – The Do’s and Oh No She Didn’t of Investor Pitching. Andrea Barrica is a Venture Partner at 500 Startups, a global seed fund and accelerator for early stage startups based in Silicon Valley. She was previously co-founder at inDinero, an accounting and taxes software solution where she led the team to the first $1M in sales in 10 months. Here are ten things we learned from her. 1. Don’t try to pitch to all investors Most of the interactions that you have with investors are not investor pitches. Most of the interactions that you have with investors are about how you can get the right type of investor who wants to hear about your company and is willing to hear about your pitch. When you have an investor who is interested, it is then time to have the investor pitch. 2. Differentiate yourself, be clear, and don’t overly pitch Create a level of personal connection. People invest in people they like. Make it a conversation (never corner someone in a party). Keep it brief, and tell your story in 60 seconds or less. Understanding the market and asking questions and advice versus pitching the business is a great way to get investors interested. Be natural, authentic, and humble. 3. If you do not have an idea, investors will not be willing to invest Support your idea, prove it out Wait until you have traction and a great team Wait until you really need the money. However, when you really need the money the most, the investor has all of the leverage versus having a great team and traction without the desperation. 4. Use your resources, networks, and community to find investors Meet people — It’s better to meet investors when you’re not fundraising Standard networking — get introductions from other investors Go where investors hang out and then find the ones that you respect Write — start writing your own blog and content The key is running your business—it is important to build, go out there and get some traction. The first investors will be family and those you are close to. 5. When meeting investors, know who is going to be there, and how many people—know your audience! The important thing to know about a meeting is that, no one is as interested in you as you think they are. You must be brief. Think about how to you make your presentation interesting. How will you make it unique? 6. If you want to stand out, work the room, run the meeting, tell a story Make a personal connection, research the people in your room. Don’t make it to feel robotic; not too many slides. If people ask questions at the end and if what you presented was clear, that means that they are interested. Don’t leave asking: are you interested? Rather leave with: will you be willing in investing; how much will you be willing to invest? 7. The don’ts Pitching is a conflict between what we say, what we mean to say, and what the person actually hears. What we say and what we mean to say is not what the investors hear. Don’t: Create slides first This is a bad way to start a presentation. So don’t rely too much on your decks and your slides. Don’t: Be A 1 pitch pony. Don’t only have one pitch prepared Have more than one prepared. Prepare for the different types of investors and what they may care about most. Don’t: Forget the 20:1 rule For every one minute of a presentation, practice out loud. Make sure the delivery and confidence is there. 8. The do’s Do: Tell a strategic story Tell a story that will help the listener understand something about your story that they didn’t before. How does my story help me to achieve my goal? It is important to ground out the things that you want people to know about you in short stories. Do: Know your secret sauce How will you win when everyone else fails? It is your differentiation. Do: Know what is the most compelling thing about your business Use this cheat sheet: Traction Team- past experience and your background Product Vision Do: Pass the 60 seconds test You need to get someone interested about your company in 60 seconds, no matter what industry you are in. 9. If you want to get in touch with foreign investors, build a great business They will reach out to you. Make sure people know you. How so? Support local organizations. What are you doing? What problem are you solving? How do you understand the market? 10. You close deals A great pitch deck and a horrible pitch won’t do anything for you. So how can you improve? Get together a small group of other young entrepreneurs and force yourself to practice consistently. Go out to new events and networking opportunities and keep pitching. You won’t get good unless you do it. Take improv classes or acting classes. Have a few friends video tape you pitching and talk about ways to improve with your friends. The only way that you will improve is by giving and getting brutal advice—patting each other on the back, will not help. Want to watch the full webinar? Check out the video below:
This is how you get and keep investors attention over email
Entrepreneurs should always be on the lookout for investors. With Google at your fingertips, finding the contact details of a prospective investor has never been easier. That said, simply reaching out to them is not enough as there are several others like you, seeking their attention. Follow the tips below, and you’ll soon be on your to snagging and keeping an investor. The prep 1. Hun, are you even ready? Before reaching out to investors, ascertain if you require external funding as meeting investors too early may undervalue your company. Also, you would need a business plan to demonstrate the viability and profitability of your business idea. Remember, investors are no fairy godmothers. They’re putting their money in to get money out. 2. Make a list of who you want to meet Finding an investor goes beyond them cutting you a cheque. You need to research potential investors, how much money they typically invest in new businesses, the kind of ventures they’ve supported in the past, and the sort of industry knowledge they can provide you. For instance, if you’re starting an e-commerce company, it’s a good idea to reach out to e-commerce gurus. 3. Engage with them on social media. This ties into the previous step. Follow the top dogs on Twitter, read and comment on their blogs, watch their speeches for advice. If you know what makes them tick, would inform you on how to approach them. Here’s a tip within in tip: In your email to them, reference a remark they made that gave you an aha moment. They’ll appreciate it, and you’d have gotten edge over your competitors. #Motherland Mogul Tip: Refrain from sending invitations on Facebook or LinkedIn, because people tend to swerve on the randoms. 4. If you have connections, use them! As competition is stiff, use every tools at your disposal. If someone in your circle, knows someone who knows an investor, tell them to ask their friend for an email introduction on our behalf. Email introductions increase your chances of getting a response. But first, be sure to send your pitch to your friend to ensure your message doesn’t get lost in translation. The Email 1. Identify yourself Start by telling them who you are, what you do, and how you found out about them. If you were connected through a mutual acquaintance, mention it. And remember: use the tip within the tip mentioned above to separate you from the pack. 2. Get straight to the point. Mention the name of your business, it’s aims and objectives. Then summarize your business plan and the stage of your startup. At this point, an investor will decide if your idea is worth pursuing or not, so be sure to be as clear and interesting as possible. 3. Provide additional info Include a link to your business website or attach a pitch deck or essay that elaborates the service or product your business provides. Also, state how your company is solving a teething problem and what sets it apart from its competitors. 4. Why them? Investors want to know why they’re a good match for you and your business. Consider what your business requires to reach the next growth phase, and use it to sell your point. Also, peruse the prep steps above for help. And of course, we’re not done… 5. Get the ball rolling Round up your email by mentioning you’d love to discuss in person, and provide three suitable dates. Also if you have product samples, offer to show them at the meeting. 6. Pique their curiosity a little Finally, if you’ve already met or are meeting a influential person, mention it! This would give you more credibility and make them pay attention to you. But be slick about it because name-dropping is oh tacky. Have you used any of these tips to reach out to investors? Did they help? Have you used others that have been helpful?