E119: How the Visa Foundation Invests w/Najada Kumbuli
Dec 10, 2024
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Najada Kumbuli, Vice President and Head of Investments at Visa Foundation, shares her expertise in impact investing and fundraising. She discusses the challenges faced by first-time fund managers and the essential role of storytelling in engaging investors. Najada sheds light on navigating new markets, particularly in sub-Saharan Africa, and the evolving dynamics of venture fundraising. Her insights reveal how strategic communication and understanding investor motivations can lead to successful fundraising in today's complex environment.
Effective storytelling is essential for general partners to communicate complex investment ideas clearly and connect with potential investors.
Targeted investments in women entrepreneurs and diverse fund managers are crucial for aligning investment strategies with a foundation's mission and societal impact.
Deep dives
The Art of Storytelling in Investment
Being a good storyteller is crucial for general partners in investment, as it allows for the effective communication of complex ideas in a simple manner. This involves not just presenting numbers but crafting a narrative that resonates with the audience, which may not be specialized in the sector. The balance between showcasing a detailed plan and articulating a compelling vision for the future is essential to connect with potential investors and stakeholders. GPs must present both the opportunities and risks clearly, motivating why their firm stands out in the competitive landscape.
Building a Mission-Driven Investment Program
Creating an investment program aligned with a foundation's mission requires a comprehensive strategy that considers both macro and micro factors. Focusing specifically on women entrepreneurs and diverse fund managers allows for targeted investments that support underrepresented groups while ensuring a strong impact. Additionally, understanding the unique characteristics of different regional markets is vital for developing an effective investment approach. By integrating these elements, it’s possible to build a robust program that not only meets financial goals but also fulfills the organization’s mission.
Navigating Economic Challenges for Emerging Managers
Emerging fund managers face significant challenges in a tough economic climate, necessitating adaptability and creativity in their fundraising strategies. They are advised to reassess their fund sizes and focus on building a solid track record with smaller ticket investors before targeting institutional backers. Professionalizing their operations, including establishing a strong back office, is critical to gaining trust among potential investors. The ability to demonstrate financial acumen and articulate a clear differentiation strategy can provide that competitive edge needed to secure funding, especially during economic downturns.
Najada Kumbuli, Vice President, Head of Investments at Visa Foundation sits down with David Weisburd to discuss what makes a first-time fund manager a breakout success, why storytelling matters in impact investing, and why this is the most challenging fundraising market since 2001.
Our Podcast now receives more than 200,000 downloads a month. Are you interested in sponsoring an episode? Please email me at dweisburd@gmail.com.
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SPONSOR:
Carta is the all-in-one suite for private fund operations. Carta’s software-based approach takes fund administration out of the spreadsheet and into the modern age with powerful solutions and intuitive interfaces, all on one platform. Their suite of products and expert services help funds at any stage with up-to-date insights and automated workflows to get them to the next level. Learn more at: https://z.carta.com/10xpod
Questions or topics you want us to discuss on How I Invest? Email us at dweisburd@gmail.com
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TIMESTAMPS:
(0:00) Episode Preview
(2:24) Launching Visa Foundation's investment program and learning new markets
(3:54) Venture fundraising dynamics and LP decision-making processes
(6:21) Identifying genuine LP interest and navigating rejections
(11:39) Sponsor: Carta
(12:22) The LP learning curve on GP investment theses
(17:48) Insights and surprises from working at Visa Foundation
(20:50) Closing remarks
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