SA Entrepreneur Thamsanqa Netha Shares What Could Be The Reason SA Unicorn Start-Ups Are Not Funded
SA Entrepreneur Thamsanqa Netha Shares What Could Be The Reason SA Unicorn Start-Ups Are Not Funded. South African entrepreneur and founder of Shiloh Capital Thamsanqa Netha took to Twitter to share what could be the reason South African unicorn startups are not funded.
The post read, “What is really being said here must bother us deeply. This means potential SA unicorn businesses are not funded because the capital is in the hands of those who don’t understand the problem. Secondly the start ups being funded cannot scale as they don’t solve for the majority.” In order for an investor to invest in a certain startup they need to first understand the startup in terms of its setup, how the startup was founded, what it’s principles are and what problem it seeks to solve. Investors want to know this so that they can see if the startup is suitable to receive the funding.
Netha however thinks that in South Africa, the majority of the capital is in the hands of people who do not understand South African unicorn startups as they are not part of the target market. He believes that startups in South Africa are solving problems that are affecting the majority of the people and since the large part of the capital is in the hands of the minority, they might not see the importance of the problem as they are not experiencing it first hand and therefore with withhold the funds. It also important for start-ups to know that if an investor doesn’t understand their business, they are liable not to invest as this is their own money and one should invest in businesses that they understand and truly believe that the business is going to make them a profit.
Netha is the not only the founder of Shiloh Capital but he is is also the CEO and CIO. Shiloh Capital is a private investment startup with a focus on investing in opportunities that will match its values of advancing human development by investing in the advancement of the African continent
