Venture Capital Is Just Business: Lessons from Chapati Stands, Microfinance, and AI


 

Why This Matters

When people hear “venture capital,” they picture boardrooms full of billionaires, complex financial models, and Silicon Valley jargon. But the deeper I’ve gone into this world—through programs like Venture Institute, NSF I-Corps, and my own entrepreneurial journey—I’ve learned a simple truth: venture capital is still business.

Like running a chapati stand in high school or lending to small SMEs in East Africa, it comes down to the same loop:

  1. Get resources.

  2. Add value.

  3. Deliver results.

  4. Grow trust and relationships.

The magnitude changes, but the fundamentals don’t.

The People Game

One of my biggest insights from the Venture Institute is that venture is a people’s game. Limited Partners (LPs) are the customers of a fund, not startups. GPs live and die by relationships—just as I once did when one client made up 50% of my branding business, and we nearly collapsed when they pulled out.

In VC, no LP should ever hold more than 20% of a fund. Diversification isn’t just math—it’s about power balance, trust, and sustainability.

Lesson: Whether it’s chapati customers, NGO procurement contracts, or LPs in a $5M fund, don’t let your business rest on one relationship.

Insights from the Microfinance Trenches

I once tried microfinancing and money lending to SMEs. It was messy. I lost money. But it gave me an education no textbook could:

  • Default cycles matter more than pitch decks. If repayment isn’t aligned with income (like harvest cycles for farmers), delinquency is inevitable.

  • Trust is capital. Group lending models worked because borrowers held each other accountable.

  • Operator scars build credibility. When I now pitch a fund thesis on African microfinance, I’m not talking theory—I’ve lived the pain of defaults and the discipline of underwriting.

In VC terms: every deal memo, every “shortlist,” and every IC call should carry that same discipline—don’t just believe the story, test the repayment logic.

Sourcing Isn’t Spray-and-Pray

Deal flow sounds glamorous—thousands of startups, curated funnels, pitch decks everywhere. The reality? You need discipline.

My sourcing strategy blends three angles:

  • Affinity networks: Diaspora leaders, alumni, mentors. (As KASA president at Yeshiva, I see firsthand the power of community visibility.)

  • Problem-led scouting: Follow regulatory shifts (like central bank KYC policies) or pain points (SME default rates) to spot startups solving urgent needs.

  • Kill criteria: If a startup can’t show repayment behavior or breakeven potential within 24 months, I park it.

In statistics, this is like setting thresholds before running an experiment—you don’t move the goalposts mid-game.

Maintaining Relationships: LPs Aren’t Just Capital

Maintaining LP trust is like running customer service for your best clients. The same way I used to walk around my chapati stand, greeting every customer by name, VC firms need to keep LPs close.

Best practices I’ve learned:

  • Transparency: Share wins and losses.

  • Consistency: Stick to reporting cadence—quarterly or annual, but reliable.

  • Community: Invite LPs to portfolio events, just as you’d invite your best customers to taste new recipes.

It’s not rocket science. It’s relationship science.

Building a Personal Brand

One exercise in the program was to reflect and share insights publicly. At first, it felt odd—why should people care about my chapati stand or failed microfinance venture? But then I realized: people resonate with real stories.

By sharing openly about what I’ve learned (good and bad), I strengthen my network, attract mentors, and build credibility with LPs, founders, and peers.

Think of personal brand as compounding interest: small, consistent deposits of value into your community eventually create exponential trust.

Final Reflection

Venture capital can feel like a fortress of jargon—LPACs, carry, IC memos, DPI, TVPI. But underneath, it’s the same old business loop: get resources, add value, deliver results, grow trust.

From chapati stands to microfinance, from KASA leadership to AxamAI’s offline edtech pilots, I see the same principle at work: business is about people, process, and persistence.

So, the next time someone asks me what venture capital is, I’ll keep it simple:
 It’s just business, only with longer timelines, bigger checks, and higher stakes.

Actionable Takeaways for Readers

  • Don’t be intimidated by VC—it’s just another business model.

  • Diversify your relationships, not just your portfolio.

  • Operator scars (failures) make you more credible, not less.

  • Build your sourcing funnel around real problems, not shiny decks.

  • Invest in your personal brand—it compounds like capital.

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