SA does not take startups seriously
Though Akindele wants to do deals across the globe – as long as they benefit Africa – he is keen to invest in South African ventures.
Platform Capital set up offices in Johannesburg nine months ago and aims to invest $20m in 20 South African businesses a year. The group has already invested in three businesses. When questioned on why Platform Capital was setting up shop in Africa’s largest capital market, Akindele notes that just because there is a lot of capital in SA, does not mean it will find its way to businesses that need it. He says capital in SA invests in “old” sectors like mining and the finance sector, but there is a shortage of capital when it comes looking for promising investment opportunities like startups. Put another way, the allocators of capital are out of touch. “We are moving to a world that is far more different than where we are coming from. The biggest export on the continent is our people, our music, our lifestyle. The current capital base does not understand how to access those markets.” Click here to read full article