Best Practices in Building a Successful VC: Insights from Zacharia George

by Daniel Boateng

Venture capital is often perceived as a glamorous and high-reward profession. However, as we recently explored in a fireside chat titled “Best Practices in Building a Successful VC,” the reality of this industry is far more complex. Venture capital (VC) is not just about monetary gain; it’s about shaping the future of innovation, entrepreneurship, and economic growth. The journey into VC often takes unconventional paths and is driven by a passion for change, risk-taking, and a desire to support groundbreaking ideas. 

This discussion took us deep into the world of venture capital, guided by the expertise of our special guest, Zacharia George, Managing Partner at Launch Africa Ventures. It was a conversation that uncovered the deeper motivations behind careers in VC, highlighting the profound impact it can have on innovation and entrepreneurship.

This conversation was the first fireside series organised as part of our Innovation Scout Program, a dynamic initiative designed to empower individuals to play a pivotal role in their local tech ecosystem. This program encourages active participation, networking with founders and tech executives, market research, and organising local events to foster collaborations. Participants are also equipped to construct compelling investor and innovation memos, all contributing to nurturing a thriving tech community.

Our special guest for this session, Zacharia George, is a graduate of Stanford University and a member of the Horndean Entrepreneurial Alliance. He is the Managing Partner at Launch Africa Ventures, a prominent early-stage VC fund in Africa. In addition to his role at Launch Africa Ventures, Zach is also the Co-founder and Chief Investment Officer at Startupbootcamp Africa Tech, a multi-corporate backed venture accelerator program.

With a diverse background spanning technology, investment banking, and venture capital, Zach brings a wealth of experience and insights to the table. He’s not just a VC expert; Zach is also an influential angel investor in over 50 African tech startups, and his contributions have been recognised in prestigious publications such as Fast Company Africa, Destiny Man, and CNBC Africa. He has been acclaimed as one of the top four most influential persons in African technology by Les Echos. Beyond the world of finance, Zach is a musician, a devoted father, a theater enthusiast, a hiker, and a sports enthusiast. His diverse interests and experiences have uniquely positioned him to discuss the multifaceted journey of venture capital.

Now, let’s revisit this insightful discussion with Zacharia George as we explore the best practices in building a successful VC and understand the motivations that drive individuals to pursue careers in this dynamic field.

Q: What inspired your journey into venture capital, and how did you transition from engineering to VC?

Zach George: My journey into venture capital was unconventional. I began as an engineer, pursued an MBA, and spent nearly a decade in investment banking. My introduction to venture capital came during the 2010 Soccer World Cup in Africa. There, I observed the untapped potential for SME financing and the differentiation between startups and SMEs. This experience sparked my venture into VC.

Q: Could you share insights into the investment thesis of Launch Africa Ventures and its focus areas when evaluating potential investments?

Zach George: Launch Africa Ventures’ investment thesis centers on providing capital and resources to early-stage founders. The fund specialises in B2B and B2B2C startups. Our aim is to bridge the gap between MVP and reaching $1 million in annual revenue, a challenging phase for startups. Launch Africa Ventures aims to reduce the time founders spend fundraising by leading early rounds and focusing on operational and human due diligence.

Q: How do you build strong partnerships in the venture capital ecosystem, and what do you expect from Limited Partners (LPs) in VC funds?

Zach George: Venture capital success depends on forming meaningful connections in the ecosystem. LPs in VC funds should offer more than capital. They should bring industry expertise, region-specific knowledge, and commercial value to portfolio companies. While many VC funds rely on developmental finance institutions (DFIs) for capital, Launch Africa Ventures has sought individual industry experts and avoided DFIs.

Q: What advice would you offer to individuals aspiring to enter the world of venture capital?

Zach George: The path to venture capital is not easy. I caution that VC is not for the faint of heart. The industry demands long hours, offers delayed gratification, and requires extensive industry knowledge. Most people enter VC after gaining experience in investment banking, management consulting, or entrepreneurship.

Q: What are the implications of the advancements of AI in Africa, and how can practitioners maximize its potential for impact and growth?

Zach George: As AI advances, it offers significant opportunities across sectors. In Africa, AI can revolutionise education, healthcare, financial inclusion, and more. Practitioners should focus on leveraging AI for social impact, addressing potential consequences, and maximising its potential for economic growth.

Q: In the world of venture capital, what is the driving force behind your work, and what motivates others to pursue careers in VC?

Zach George: The driving force behind my work in venture capital is the potential to create a better future. Money is not the primary reason to enter VC. The industry’s power lies in its ability to change the way businesses operate, foster innovation, and create a lasting impact. For those considering a career in VC, it’s crucial to understand the long-term commitment, the need for industry expertise, and the power to drive meaningful change.

Q: Is Africa missing out on the AI revolution due to regulatory issues like censorship in some African countries, which may hinder access to AI technologies?

Zach George: The driving force behind my work in venture capital is the potential to create a better future. Money is not the primary reason to enter VC. The industry’s power lies in its ability to change the way businesses operate, foster innovation, and create a lasting impact. For those considering a career in VC, it’s crucial to understand the long-term commitment, the need for industry expertise, and the power to drive meaningful change.

Q: What’s the current state of the startup and venture space in Africa, and is there a need to tweak the approach to investing in tech and innovation on the continent?

Zach George: Venture capital is inherently risky, with many startups expected to fail. However, there’s no excuse for fraud or deception. Startups should focus on unit economics, build strong in-house tech teams, and allocate a significant portion of their budget to marketing. Additionally, they should plan for cross-border expansion.

Q4: Why should people be excited about getting involved in the global tech ecosystem and how has technology shaped our lives?

Zach George: Involvement in the tech ecosystem is exciting because technology is shaping nearly every aspect of our lives, from how we transact, communicate, travel, and even study. VC-backed companies are driving innovation, and the pace of change is remarkable. Staying engaged in this industry offers the opportunity to be part of that transformative journey and to remain at the forefront of technological advancement.

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