Why and how to build a USD 100+ million Venture Capital Fund to build the private sector of Afghanistan
How to build a USD 100+ million Venture Capital to build the private sector of Afghanistan
This article explains why and how to build a USD 100+ million Venture Capital Fund to build the private sector across key industries in Afghanistan.
Financing through banks appears very limited to private companies in Afghanistan
Many businesspeople express difficulties to raise initial funding and finances for doing projects and scaling their business operations.
Private local families and companies have idle savings that are ready for investments
Due to limitations on banking systems, few people in Afghanistan use banks to store their money and possessions. Most people keep cash, gold, jewelry and other valuables at home. Such possessions are idle, in risk of theft or depreciation. All cash, gold, etc. could be all invested into secure revenue & profit generating projects that help build Afghanistan across all industry sectors.
Most entrepreneurs & businesspeople are afraid/ ineffective to engage with private people and ask them to invest their money
Dozens of face-to-face conversations in Kabul revealed that entrepreneurs & businesspeople feel (very) uncomfortable to approach private people for investing money in their business. Often, they do not know how or are poorly prepared and share without conviction. They lack focus, facts, and presentation skills. After a few poorly planned/ done efforts, they give up and abandon their business ideas.
Raising funds requires notable planning and execution skills including as follow:
Raising funds from private investors is hard work and requires diligent, systematic planning & execution
It takes time, effort and commitment to raise funds through private investors. A lot of learning and improvement are necessary. Some people will invest; many will not. It is a numbers game: Entrepreneurs may have to talk to dozens of people before finding the first private investor. There is no shortcut!
The situation is the same in every country around the world. Only in Afghanistan, many people believe that “somebody else should do something” for them. Two decades of failed NGO and other donor work handing out free money with little sustainable value and tangible results have put many Afghans into a feeling of entitlement, complacency and sometimes outright laziness. Unfortunately, only few Afghan businesspeople & entrepreneurs are willing to do the hard work that is expected like in any other country.
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Forget about NGOs and foreign donor organization to ever build Afghanistan!
NGOs and foreign donation organization mostly focus on humanitarian & crisis relief. It looks good on pictures and videos to show people who receive goods. It is good for those NGOs and other donor organizations to raise their own funding. Click here and read this article: The good and bad sides of NGOs in Afghanistan | LinkedIn?
However, it does not help build Afghanistan. NGOs/ foreign donor organization are often not willing to invest into large building & infrastructure projects that would make a lasting impact. Again, it is easier to take pictures of handing out relief items to people, rather than building a dam that would prevent catastrophes and help generate well needed energy to empower businesses... Here, NGOs/ foreign donors would be real investors, but they do not want, because they would participate in large efforts and could not claim the results for themselves alone... NGOs/ foreign donor organizations are stuck in their own mission statements that are often not aligned with the needs of Afghanistan.
The need to create a Venture Capital fund to build the private sector in Afghanistan
There is a notable lack of available financing options in Afghanistan:
Logical conclusion: Afghanistan needs a Venture Capital fund that helps build the Afghan private sector. This document explains how to build it and how to invest the money.
How the Venture Capital fund will source money and support
The VC team will build the fund by sourcing from private individuals & families, businesses, investment companies, strategic partners, government agencies and foreign donor organization.
First phase: Source investment funds from private people, business owners and companies.
Second phase: Source funding from other investment companies and strategic partners
Third phase: Source from government agencies and foreign aid & donor organizations.
See this chart for details:
How the Venture capital team will generate profits to investors and build the private sector of Afghanistan
The VC team will screen, analyze and identify the initiatives and individual projects with the highest profit return and impact in each industry sector.
The Fund will focus on the key necessities of the Afghan people: Food, Housing, electricity, water, data & voice connections, health, education, etc.
The VC Team will prioritize efforts that can impact millions of Afghan people and help build the project in a sustainable way. The VC Team will cover the key industry sectors as follow:
See graphic for details
Many, highly profitable investment & business opportunities in Afghanistan across all industry sectors
Click on the links to read on specific opportunities
6.????? Immediate Real Estate & Infrastructure projects in Afghanistan and how to do them | LinkedIn
9.????? Eight creative TV show suggestions to help build the business sector in Afghanistan | LinkedIn
11.?? Building AfghanTube: The Social Media Platform for Afghanistan and Afghans worldwide | LinkedIn
12.?? Other
Click on large key initiatives
And mor...
Conclusion
Afghanistan offers great investment opportunities that offer very high return on investment and help build the country across key sectors. The USD 100+ million Venture Capital Fund can financially enable many projects & businesses and create a win-win situation for businesspeople, public, government and investors.
?Connect with/ contact Alex Steinberg directly at WhatsApp +966 531824178 to schedule a meeting for expert exchange & discussion. Note: Alex is Kabul (but keeps his foreign WhatsApp number)
About the author
Alex Steinberg has helped develop, lead, execute, and advise large programs & projects for 30+ of the largest multi-national companies in the world. He leverages his experience with top consultancy firms to bring together business opportunities, government and people needs. Alex has notable investment expertise helping companies to go IPO and companies to achieve higher shareholder value.
Alex has helped build countries across key sectors including healthcare, education, telecommunications, real estate & infrastructure, energy, manufacturing and other key industries. He has helped positively impact over one hundred million people while generating profits for his shareholders.
Alex is currently in Kabul, defining opportunities and creating solutions to help build Afghanistan. He is engaging with top decision makers and expert from companies and government representatives.
Legal Disclaimer
This article reflects the opinion of Alex Steinberg only. It does not claim to represent the viewpoints of any present/ former client, employer, or partner. The author acknowledges that there are often different viewpoints on a topic, which are equally valid. Constructive discussion rather than criticism can lead to better ideas and positive outcome & value to business and society.