Inside the mind of a VC: A discussion with Lise Birikundavyi, Managing Partner, BKR Capital
Where are the biggest opportunities African venture capital? How do you conduct due diligence in this space and what will the next year bring for this region? We spoke to Lise Birikundavyi, Managing Partner, BKR Capital, ahead of SuperReturn Africa - read the Q&A and watch our exclusive interview with Lise below:
What are you looking for when assessing investment opportunities?
Our main mission is the bridge the funding gap when it comes to founders from the Black community. That’s where we start. Then, we look for founders with an unfair advantage in whatever space it might be – people who have understood a pain point that constitutes a massive opportunity for revenue generation and who can prove to us that they are the best to execute this strategy.
What’s the most important question to ask a start-up in which you’re considering an investment?
“Why is this an important problem to solve for you?”
I love to understand the founders’ why – this gives me comfort to know when someone has skin in the game and wants to succeed as much as we do. The entrepreneurial journey is hard and supporting founders’ whose motivation to win goes beyond short term gains is important to us.
Where are you seeing the biggest opportunities in African venture capital now?
I’m personally bullish on platforms that can train and employ virtually African youth to fill the growing talent gap in Western economies. With its growing and highly connected population, Africa will be a game-changer when it comes to tech talent.
How do you conduct due diligence to ensure minimal risk and high returns?
We go through a rigorous process that lasts generally between 2 to 4 months where we assess the business thoroughly. We talk to shareholders and stakeholders; we try the product – our goal is to have a 360-degree view so that we invest with an understanding of who we are partnering with as this will be a long-term relationship.
What are the biggest challenges the LPs and GPs alike are facing today in venture capital, and how are they different (if at all) in Africa from for example Europe, Asia and North America?
The main topic of conversation in my circles is “governance”, whether I speak to my North American or African colleagues. I think that the recent aftermath of the discovery of excesses from founders all over the world have disproportionately affected the trust in the African ecosystem while other ecosystems don’t suffer from similar unfair generalisations. Luckily, we are still seeing a growing acknowledgement of the amazing opportunities that exist on the African continent by seasoned investors, both at the GP and LP level.
What advice would you give to a founder pitching to a VC?
Our team actually offered in depth thoughts on this question in a blog last year, but at a top level, my best advice would be to make sure you’re ready for VC funding - don’t just pitch because you’re being told it’s what you should do – build your business, build your moat, get money from customers first… then, understand who you want to connect with - not all investors will be a good match for you. You’ll have more chances to get someone to believe in what you’re doing if you’ve done the work and if you’re thoughtful about why you’re looking for funding and who you want that funding from.
Want to hear more about VC in Africa? Watch our interview with Lise from SuperReturn Africa 2023: