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Private design preview · New editorial copy for review
Insight · Enterprise & capital

Are you financing a business—or the ecosystem around it?

A clearer view of what the money must do can change the
funding conversation.

3 min read · Lapid Leaders Africa editorial draft

One ambition, different kinds of cost

An enterprise in an emerging industry may be doing several jobs at once. It must deliver its product, find customers and meet operating costs. It may also need to develop suppliers, build specialist skills or help establish a market. Those activities contribute to the same ambition, but they do not necessarily have the same financing needs or time horizons.

Separate what is being built

In the Dialogue with Jeff Schon and Carol Ndirangu, Carol drew attention to the distinction between financing an enterprise and financing ecosystem development. When those costs are bundled into one proposal, investors and founders can misunderstand what the funding is intended to achieve. Separating them creates a more useful discussion about timing, risk, the source of repayment and who benefits.

Find evidence of value

Jeff’s account of building Akili Network connected creative purpose with customers, planning and revenue. He described the importance of market validation and the first evidence that different customers would pay. That experience suggests a practical discipline: test the proposition with the people expected to value it. A compelling mission and a plausible market are starting points; the response from actual users and customers can change the plan.

Consider fit before pursuing every opening

The conversation also examined investor fit. Capital providers differ in their mandates, geography, stage and expectations. Funding that requires an enterprise to become something unrelated to its purpose can carry a significant cost. Founders need enough clarity about their direction to assess whether the relationship supports it. Investor readiness also requires governance, credible information and the ability to deliver.

A useful map for your next conversation

List the major activities your next phase requires. For each, identify the intended result, likely time horizon, beneficiaries and whether there is a credible source of revenue. Then distinguish the enterprise’s own costs from shared capabilities that benefit a wider industry. Use that map to sharpen questions for potential funders and professional advisers. It is a planning exercise, rather than a guarantee that suitable finance will be available.

Still open
Who should carry the cost of shared industry capabilities when their value extends beyond a single enterprise?

Developed from the Unbuilt Future Dialogue, What must exist around ideas for them to grow?. Practitioner examples are paraphrased from the recording; the interpretation and application questions are Lapid editorial synthesis. This is a draft for review.

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