My VC journey: Exercising a deep commitment to building startups that endure

As Africa’s venture capital ecosystem matures, I find that the role of fund managers like HAVAÎC has become increasingly multifaceted. 

Successful fund managers need a broad range of skills to ensure founders are supported in all the right ways and that startups scale to maximise not only impact but also financial returns. This goes beyond just identifying high-potential companies and allocating capital. It's about embedding strong governance, driving financial discipline, and helping founders build businesses that can stay the course, both economically and in a socially responsible way. 

As a Chartered Accountant (CA) and a CFA charterholder with over a decade of experience in private equity and fund management, I have a deep understanding of financial strategy and what it takes to guide businesses from early traction to sustainable growth. This includes ensuring they scale in a way that is financially sound, operationally efficient, and strategically defensible.

Lifting the lid on startup financials

Thanks to my background in finance, I have seen firsthand the importance of a strong financial foundation. It’s simply not negotiable, especially for startups looking to grow at a strong pace and attract follow-on capital.

We invest a substantial amount of time and energy into rigorous due diligence. To ensure a startup can survive scaling in emerging markets, it has to build and maintain robust financial models. This includes setting realistic revenue and cost assumptions, stress testing different scenarios, and paying careful attention to cash flow. Emerging markets are volatile, and startups need financial armour to succeed and ultimately scale. 

As a fund manager, identifying value drivers and unpacking these key risks upfront helps secure fair terms and provide the right support post-investment. 

Finding a path to profitability

Growth at any cost is not a viable business strategy in African VC. While the model is common in more mature VC markets, it’s a quick way to fail when capital is scarce, fundraising takes longer, and markets are challenging. Instead, we prioritise sustainable unit economics.      

This means figuring out exactly how and when a company will become profitable. We work closely with our founders to ensure growth always comes from sound financial metrics and startups don’t overextend in pursuit of top-line growth. Putting profitability alongside growth sets our companies up to succeed regardless of the fundraising pace. 

Managing risks in volatile markets

Early-stage businesses inherently operate with high levels of uncertainty, but this is amplified in Africa, where regulatory shifts, infrastructure limitations, and economic volatility are the norm. 

While many of these circumstances are out of our control, they can be managed, even leveraged, to protect the path to scale. So the focus shifts to identifying, prioritising, and managing critical risk factors. 

My experience in private equity consulting and nearly seven years in African venture capital have given me the skills and exposure to effectively guide founders through this multilayered risk assessment process.

Operational vulnerabilities

Our first port of call is to identify early operational vulnerabilities. These include over-reliance on one client or supplier, key person dependencies, and tight cash flow cycles.

Financial discipline

I also work closely with founders to embed financial discipline from day one, ensuring tight cost control, realistic runway planning, and contingency strategies in case of funding delays.

Scaling risks

We scrutinise scaling risks to mitigate issues along the growth journey. Common pitfalls include over-expansion before the product-market fit is fully validated, or escalating fixed costs without demonstrating recurring revenue. Setting appropriate pricing for new products in new markets also requires significant work. 

The key to scaling

Strong governance is vital in all young, growing businesses and is a must-have for companies looking to scale and attract follow-on capital. 

We work closely with our founders to build best practice frameworks that can scale with the business. This includes establishing diverse and effective boards that balance strategic input with oversight and ensure financial transparency and compliance. 

We create companies that can withstand scrutiny, attract sophisticated and often international investors, and go on to raise significant amounts of subsequent investment capital.

Incorporating ESG

Beyond the financials, sustainability today also means building companies that are environmentally and socially responsible. 

Increasingly, South African and International LP mandates are placing greater emphasis on ESG and impact. For potential investment opportunities, this means ESG risks have to be identified upfront and then monitored and managed throughout the investment life cycle. This ensures full integration of sustainability strategies into the fund management process.

This could include anything from securing board seats and ensuring the set-up of a board post-investment to creating fair labour practices and considering new hires through a DEI lens. 

Companies that prioritise sustainability are not only better for society but ultimately also more resilient—often more investable and more attractive to follow-on capital, particularly from global investors who see ESG and impact as a core part of their thesis.

Closing remarks

In African venture capital, sustainable success demands more than capital. It requires disciplined financial oversight, strategic growth planning, and a deep commitment to building businesses that endure. 

As a Partner at HAVAÍC, it’s extremely rewarding to help founders scale responsibly and anchor growth in strong unit economics, sound governance, and sustainable business practices. 

By applying structured risk thinking from the earliest stages, we can help Africa’s startups make smarter decisions, avoid common pitfalls, and build ambitious, resilient, and adaptable businesses in a challenging operating environment.