The Lack of Seed Capital

At Poptech Erik Hersman discusses seed-funding challenges faced by entrepreneurs:

It turns out that one of the main problems in places like Africa, which is somewhat similar to places in India, is that the investors have to be educated first. Seed capital and early venture funding is a high risk proposition. There are few investors who care about technology, and those that do are interested in the later stages of investing.A common problem in Africa is finding young entrepreneurs with a good idea, generally technical in nature, and they need about $5000-$10,000 to handle operations and build out of their technology in the first 6 months to a year. If they can find a local funder, that person generally wants an inordinate amount of equity in the operation - anywhere from 40-80%...[continue reading]