I just read an article about the struggles experienced by black tech entrepreneurs

[---]

Thing is, VC is a risky business in itself. There definitely is the need to be able to absorb costs and build at scale, but I wonder if there were ways to build smaller versions of the same digital products so things could start generating money from an earlier point before VC is necessary and or eliminating the need for VC? Often inventors will trade equity for the idea and when it doesn't perform to the ability that they agreed upon, the idea is absorbed into the VC's "assets" and shelved.

I have gathered this small understanding through some business learnings but I am definitely willing to learn more about it, especially if my ideas are off-base or wrong.

Is there a better way?

@Arbitrage! @Cynic since yall have big money experience and aren't in this thread

Had to check what the trend is about, I can give just two viewpoints on this. One from being in Asia and one leading the development of a project even though I'm not in VC.

1) Being in Asia has made me realize a few things. You need to know your stuff inside and out! I mean you have to be the smartest one in the room. That comes with an unbelievable work ethic to produce results. It builds social credit with people! Even if you fail people remember the work ethic and knowledge before they remember the failure. Also for the most, people care about if you can deliver on the products and services that's basically it! Now even though that's Asia it's going to be the same in North America, but with a slight twist as there are a lot of biases to overcome back home that doesn't exist in Asia. I have never heard the odd black jokes in Asia, ever time dealing with white people one will pop up. But all in it's about what can be delivered.

2) So done a few projects with Caribbeans governments and those projects got a lot of attention as most of the team were brothers and sisters from North America and the Caribbean and mostly East Indian as the technical team. To be honest even those didn't turn out well because of timing but we picked up a lot of exposure even though the timing was off. But the team all had MBA and master degrees and a good track record believe one even had a Ph.D.. Have to look back and make sure don't quote me on that. So back to the point, there was just one member who was white on that team and he held a low-level position. It goes back to the point if you can deliver, it is the main driver. As the team has accomplished things before.

Now let me answer the last part of your question, investors are fickle honestly. Yes, they will trade equity for your ideas but only if other people are interested in the idea. It comes back to point one again and marketability. I have seen pure shyt ideas. I mean ideas that are flawed from head to toe raise capital all because of hype! I'm wondering how did that raise a few million dollars when anyone can see there are flaws all over. It's all because of one name got attached to the project!

I hope that helps!

 

[Family Man]

Been there. I had to give it up and move on to something else. My former partner been struggling with getting his shyt off the ground since 2009! It's a really good service that he has. Our Network is just too limited. I've seen that man do everything short of selling his ass to get funding. It's a potentially billion dollar service but watch some more well heeled and entrenched company steal his shyt *smh*

 

[SNG]

Is the infrastructure there in Africa yet to succeed at the level that he could in America? Especially if given the correct resources?

Sure the infrastructure needs improvement but Black Americans can help out because the know how the IT works here. I think Africa is opportunity if your looking to support an all black tech field. In America the tech field is controlled and ran by whites so your going to have to work with them in order to succeed and you see how that is.

 

[Turbulent]

Been there. I had to give it up and move on to something else. My former partner been struggling with getting his shyt off the ground since 2009! It's a really good service that he has. Our Network is just too limited. I've seen that man do everything short of selling his ass to get funding. It's a potentially billion dollar service but watch some more well heeled and entrenched company steal his shyt *smh*

without giving too much away, what are the hurdles as far as networking? And is it in the tech industry?

 

[Breh13]

Literally can’t do anything right with these fukks. Just like Tulsa, they’ll fukk you up if you’re successful at the same time say look they’re wallowing in poverty while other non-blacks are highly successful.

Unspoken glass ceiling cacs put on successful black people. A lot of black business don’t get anywhere without a visible white face. Some owners even hire cacs to act as “owners” so they can get by.

Cacs won’t allow us to be successful, at least many of us. The few that are will be used as examples that it’s a post-racial. Just like they use Obama.

 

[Jimmy from Linkedin]

Now let me answer the last part of your question, investors are fickle honestly. Yes, they will trade equity for your ideas but only if other people are interested in the idea. It comes back to point one again and marketability. I have seen pure shyt ideas. I mean ideas that are flawed from head to toe raise capital all because of hype! I'm wondering how did that raise a few million dollars when anyone can see there are flaws all over. It's all because of one name got attached to the project!

Well yes, this is what we are talking about, marketability and delivery. If you can prove these things outside of the VC, do you need the VC? If you can market and have successfully implemented monetizing, then do you need a VC?

I think with some of these tech services we have a Web 1.0 approach of making services like, lets host this thing and figure out the monetization later, which produces a lot of the controversy that Youtube has, because of their need not just to make money, but to make money that they promised to make when they got VC funding.

I guess what I am saying is that we should be looking at this in a different way. outside of the VC

 

[Cynic]

Thing is, VC is a risky business in itself. There definitely is the need to be able to absorb costs and build at scale, but I wonder if there were ways to build smaller versions of the same digital products so things could start generating money from an earlier point before VC is necessary and or eliminating the need for VC? Often inventors will trade equity for the idea and when it doesn't perform to the ability that they agreed upon, the idea is absorbed into the VC's "assets" and shelved.

I have gathered this small understanding through some business learnings but I am definitely willing to learn more about it, especially if my ideas are off-base or wrong.

Is there a better way?

@Arbitrage! @Cynic since yall have big money experience and aren't in this thread

Others may disagree but I'd say avoid Vulture Capital.- you'll be forced out of your board and diluted to sh!t

You can still make money in legacy industries through acquiring companies or doing sweat equity deals where you boost company
revenues for a buy-in. It works better when you use special interest groups but that's beyond the scope of what I care to share.


I don't come from the institutional finance world so best to ask @Warren Moon about financing options and @Astroslik on legal.

 

[Gold]

How Elizabeth Holmes is still a free woman is crazy. The difference between her and a breh is they would've verified his claims day one.
Elizabeth Holmes was faking demonstrations and forging the documentation for years and no one questioned her.

Imagine easy life would be person if no one ever asked you "how?"

Caccette: My startup wants the contract, we can deliver 4billion covid test in 4 weeks


VC: Wow that's incredible. Mr Gold, do you have a comparative counter?



Me: ..... this bih just say 4 billion ????

 

[Ya' Cousin Cleon]

you don't have to be a Marxist to be for economic democracy

This Marxist gimmick of yours is getting old

We gotta go to city hall and fight for concessions? To start and grow a business?

 

[TheAnointedOne]