This article is based on a conversation from Voices & Visions, a podcast produced through a partnership between Tutto Passa Agency and TechCabal, which explores the people and ideas shaping Africa’s innovation economy.
One of the strangest realities of African business is that finding someone to invest $10 million can sometimes be easier than finding someone willing to write a cheque for $50,000. This is according to Francis Nasyomba, founder of Nairobi-based investment advisory firm Raising Capital.
It sounds counterintuitive because smaller investments should, in theory, carry less risk. Small African companies are seeking modest capital to buy another production line, open a new branch, hire five more people, or digitise operations. They are not looking for $10 million, but may be seeking $100,000.
Paradoxically, Nasyomba argues, that may be the hardest cheque to raise in African business today.
Originally published by TechCabal.