Fisayo Durojaye has lived many lives. He’s been an funding banker, a enterprise capitalist, and an educator. All through his profession, Durojaye has held the idea that native context is essential in making good funding choices. This ideology has served him properly by shaping his strategy to angel investing, which has already yielded an exit, knowledgeable his enterprise capital profession, and shaped the muse of his VC course, Immerse VC.
He has invested in three Nigerian startups as an angel investor: Oneport 365, a Nigerian logistics startup that raised $5 million in seed funding (which he has exited); Shuttlers, a startup digitising shared commutes; and Homefort, a clear vitality startup. Whereas this may occasionally not make him a prolific angel investor by quantity, his hands-on help in serving to these startups elevate capital has earned him his stripes within the ecosystem.
“All three [companies] have been structured the identical manner,” Durojaye advised TechCabal in an interview. “I noticed the deal first, introduced others in, and invested alongside. That’s my model. I say I’m a very good investor, it’s as a result of I can spot nice offers and persuade others to co-invest.”
Immerse VC has already produced a number of enterprise capital analysts now working at companies like Seven VC, Lofty Inc., and Kuramo Capital, with college students from companies like Consonance, Oui Capital, Sahara Impression Ventures, and the IFC additionally attending.
Durojaye advised TechCabal that he began Immerse VC to assist resolve what he referred to as a monetary understanding downside, designing the course to assist members discover ways to correctly consider companies and make knowledgeable funding choices.
“Individuals say an organization is ‘scalable’ simply because it doesn’t personal property,” he stated. “However that’s not all the time true. When you take a look at the accounts, you’ll see how tight the margins are. A few of them are dropping cash on the income line. When you perceive finance, you’ll see these items immediately. That’s why I educate it. That is about serving to folks keep away from unhealthy offers and enterprise fashions that don’t work.”
TechCabal spoke to Durojaye to grasp his funding strategy and why he’s instructing the following era of African traders.
This interview has been edited for size and readability.
You began in funding banking, and now you’re a VC, angel investor, and educator. How did all this occur?
It began with attempting to grasp enterprise information. I wasn’t aiming to be taught finance at first—I simply wished the enterprise sections of the papers to make sense. I’d Google stuff, and that’s how I began studying finance. By my second 12 months at school, I realised I used to be extra interested by finance than in English (which I studied) or Legislation (which I deliberate on learning).
Once I graduated, I began working free of charge, and by the point I acquired my first job, I realised one thing: my colleagues had first-class levels in economics, however none of us knew something helpful for funding banking. The faculties hadn’t ready us for the job. So all of us needed to be educated from scratch.
That’s once I understood that I wasn’t at an obstacle. Positive, they knew the speculation higher, however I understood the markets. That’s the distinction, and as I acquired extra comfy in my second 12 months as an analyst, I began instructing. I’d seen that the brand new guys becoming a member of additionally didn’t know a lot, so I figured, “Why not assist them?”
I began instructing funding banking in 2014, a 12 months after I joined in 2013. My buddies and I began an organization referred to as EduBridge Academy. We began instructing on weekends, and we taught finance, PowerPoint, Excel, monetary modelling, and macroeconomics—all of the instruments you want in funding banking.
4 years into my funding banking profession, I used to be drained. I wished extra. The everyday transition again then was funding banking to non-public fairness. This was round 2015–2016, and VC wasn’t a factor but. I used to be searching for PE roles, however there weren’t many.
Then I found EchoVC, utilized, and acquired the job. Earlier than that, I used to be already interested by tech. At EchoVC, I may keep near finance and help early-stage founders. These corporations wanted assist: recruiting, finance, modelling—all of it. As soon as I acquired into VC, I seen folks didn’t perceive accounting or finance. In VC, folks simply throw out issues like “valuation is a a number of of income.” However even fundamental income ideas are misunderstood.
So I noticed the hole and thought, “let me educate analysts and associates in VC.” That’s the way it began. I designed a six-week program, just like EdBridge, and began instructing on-the-job abilities.
Was there a specific second or deal that made you realise you wished to go away funding banking for VC?
I used to be already getting bored with funding banking. If you know the way it really works, you do a deal, acquire your payment, and transfer on to the following. We have been hunters. One deal that solidified it for me was Mainstreet Financial institution.
We helped promote Enterprise Financial institution first, and I used to be the lead analyst on it. It was a very good deal—we made some huge cash. However after Skye Financial institution acquired Mainstreet, they’d “indigestion.” They couldn’t combine, and ultimately each banks failed. The Central Financial institution needed to step in and merge them into Polaris. We acquired paid, however my legacy went down the drain.
Our consumer, the Asset Administration Company of Nigeria, was completely satisfied as a result of they bought the financial institution for a very good worth. However for me, it didn’t sit proper. That’s once I began rethinking the work.
Once I ultimately entered VC, I realised that’s the place I belonged. One of many first offers I labored on at EchoVC was LifeBank. The founder was captivated with fixing blood shortages and poor healthcare infrastructure. We gave her cash, however we didn’t cease there. We helped with recruiting, finance, modelling—all of it. It wasn’t simply investing however lively help. That resonated with me.
Quick-forward a number of years: when my spouse was about to ship our first son, she wanted blood. Guess who delivered it? LifeBank.
We may afford the whole lot, however nonetheless, it was a full-circle second. We had invested within the firm that later helped me throughout a essential private second. That made me really feel like I used to be doing one thing worthwhile. That’s the legacy I need.
You have got all the time emphasised the significance of native information. What does that imply within the context of VC?
Native context is essential in investing. Again within the day, folks have been elevating cash for “monetary inclusion,”, and their answer was, “obtain an app.”
That doesn’t resolve something. How does app obtain translate to monetary inclusion? When you perceive the native market, you gained’t fall for that sort of story.
Let me provide you with an instance: Shuttlers. I lived that downside. Once I was in funding banking, I didn’t have a automobile, and I hated yellow buses. Generally I had no selection, and I bear in mind one wet day sitting in a bus with rain leaking in.
That’s once I switched to BRT. I needed to get to the bus cease by 4:30 a.m. day-after-day to catch the primary set of buses. That was my life—get up early, be a part of the queue.
So once I noticed Shuttlers’ answer—structured AC buses that provided comfort for a bit more cash, I instantly noticed the worth. Uber isn’t day by day transport. However this mannequin? It may work for thousands and thousands.
Native context helped me see that. If I’m investing in Kenya, the place I haven’t lived, I depend on traders there. Founders will pitch the dream, however solely folks on the bottom can validate it. Even pricing nuances are vital. It shapes whether or not the deal is viable.
Moreover Shuttlers, is there some other deal the place native information helped you make or keep away from an funding?
Sure. OnePort. The founder had been a customs dealer for years. He understood freight forwarding, customs, and transport. He constructed a platform that allowed you to bypass a whole lot of the effort on the port.
He aggregated transport charges throughout suppliers, just like the “Wakanow” of freight logistics. It solved an actual downside, and I understood the ache level as a result of I’d seen it firsthand.
What did you be taught from exiting OnePort?
What I’ve learnt is: if you see liquidity, take it.
I exited OnePort regardless that I didn’t wish to. The lead investor didn’t need a bunch of small angels holding up the cap desk. It was an honest return. Not nice on the time, however wanting again, most angel traders haven’t even gotten money again from their offers.
I’ve, and that counts. Liquidity is the whole lot on this sport. Take it when it comes.
You’ve already shared why you began instructing and the gaps you have been attempting to fill. What’s been your most rewarding second as a instructor?
My most rewarding second got here from the very first woman who joined Immerse. She referred to as me at some point and stated she’d simply gotten a job at Kuramo Capital.
I hadn’t even identified she was within the course of. I knew the folks at Kuramo, and I may’ve put in a phrase. However I didn’t even have to. She advised me she solely had the arrogance to use due to what she learnt at Immerse.
That is somebody who had already been working in VC. To listen to her say that Immerse gave her the arrogance to even apply was humbling. I didn’t realise how a lot of an impression we have been having.
One other proud second was a scholar who acquired a job after three years of attempting. I noticed how powerful it was for him to get into VC. That confirmed resilience. These two stand out as a result of they present how far confidence and competence can take you.
Once you have been constructing the Immerse curriculum, how did you steadiness international enterprise capital frameworks with the nuances of investing in Africa?
Our curriculum might be probably the most complete VC curriculum on the market, and that’s as a result of we’re not simply instructing concept. That’s why I referred to as it “Immerse.” It’s immersive and really sensible.
We don’t have time for fluff. From Day 1, we dive proper in. We construct a fund mannequin from Day 1. Six weeks isn’t a whole lot of time, so we make each minute rely.
I additionally knew we couldn’t be faraway from the ecosystem. That’s why we usher in gamers from the ecosystem in order that members get real-world context. We’ve constructed a strong steadiness between heavy technical work and ecosystem integration.
From a world perspective, VC is VC. It’s like funding banking—whether or not at JPMorgan or Goldman Sachs, the basics are the identical. The distinction is the place you’re making use of it.
However right here’s the factor: America’s VC system was designed for its ecosystem. You may construct a unicorn in California with out leaving your state. In Africa, you don’t have that luxurious. It’s fragmented. You develop throughout borders, take care of language obstacles, after which the FX devalues your capital when you’re executing. It’s powerful from Day 1.
Whereas the American 10-year fund life cycle works there, I don’t suppose it really works in Africa. You’re caught between a rock and a tough place. You may’t create a brand new construction as a result of LPs—largely Individuals and Europeans—solely perceive the VC mannequin.
Native capital doesn’t wish to contact VC as a result of they don’t perceive it both, so that you’re compelled to undertake a mannequin that isn’t suited to your market. That’s what we attempt to handle at Immerse.
We do an train the place we ask, “How large can this enterprise get?” Not from a valuation perspective, however income. That’s one thing we will management. We ask our college students to consider what the enterprise must appear to be operationally at that income dimension.
What are the most typical misconceptions your college students have about VC after they begin the course?
An enormous false impression is that VC is glamorous and straightforward. They take a look at analysts and associates and see them residing properly—large salaries, good vehicles—and assume the work is simple. One other is that individuals suppose their job is simply to chop cheques. They don’t realise that, at the same time as an analyst, you’re a steward of capital. It’s possible you’ll be incomes a wage, however you’ve gotten a fiduciary duty to the restricted companions.
I attempt to dispel all of this from day one, which is why we begin the Immerse program with fund modelling. When folks see what it takes to return cash in a 10-year fund cycle, it turns into very actual.
Do you suppose VC might be taught, or do you largely be taught it by way of doing offers and sample recognition?
After we began doing VC in Africa, most of us didn’t know something. All we had have been templates from the U.S. We copied what we noticed within the Valley as a result of that’s all of the restricted companions understood, too.
I imagine VC might be taught; in any other case, I wouldn’t be doing Immerse. What I’m instructing now, I learnt from expertise. That’s the distinction.
However over the previous 10 years, we’ve constructed expertise right here. We now know what works and what doesn’t. That’s what I’m passing on.
In fact, the market will nonetheless educate you numerous by way of offers, losses, and sample recognition. However the fundamentals can positively be taught.
What’s your tackle the present state of VC in Africa—are we in a second of recalibration or acceleration?
It’s recalibration. A number of funds didn’t find the money for within the final two years. However that’s altering—many funds are closing once more this 12 months.
Nevertheless, most of them usually are not elevating cash on the identical thesis they used earlier than. Everyone seems to be pivoting to local weather or some scorching vertical—as a result of that’s the place LP curiosity lies and never essentially as a result of they imagine in it deeply.
Sure, more cash is coming again into the system, nevertheless it’s cautious cash. Nobody is writing checks simply because one other big-name VC did. That is the final likelihood for a lot of funds. In the event that they don’t ship this time—actual returns, actual exits—they possible gained’t be capable of elevate once more.
We’re in a second of cautious recalibration, not acceleration.
What’s one structural change that you just imagine would unlock the following era of African GPs?
Everybody talks about native capital, however I believe the actual unlock is liquidity. Can smaller traders exit early when an organization grows? Can PFAs (Pension Fund Directors) take part within the ecosystem, both by way of funds or straight in startups?
Till we work out liquidity, nothing else actually scales. At the moment, banks fund large companies. PE funds write large cheques. VC funds chase the shiny tech founders. However there’s no capital for the center—these strong, non-VC-style companies.
We want a brand new class of funders and a clearer path to liquidity. As soon as we now have that, the whole lot else will fall into place.
As a result of as soon as closing consumers sign what they need, we will all align and construct corporations accordingly—worth self-discipline, real looking exits, actual enterprise fashions.
What recommendation would you give to new angel traders attempting to interrupt into African tech?
Begin from no. That needs to be your default stance. Don’t make investments until the corporate proves it’s investment-worthy.
Angel investing in Africa is extraordinarily dangerous. Even VCs solely spend money on 1% of the startups they see. And angels, in contrast to VCs, don’t have a portfolio to steadiness that danger.
Solely say sure when you’ve gotten conviction, and you already know you possibly can assist the founder develop to the following spherical. VC is difficult. The funnel will get narrower as you go up. You begin with 100 startups getting angel cheques. Possibly 50 get seed rounds. Possibly 10 make it to Collection A. Possibly 2 to Collection B.
When you’re an angel investor, the percentages are stacked in opposition to you. You’re more likely to lose cash. So your default setting needs to be “no” till confirmed in any other case.
For angel traders who do say “sure”, how ought to they consider conviction and portfolio technique?
Angel investing is faith-based. There’s normally little or no to go on—only a founder and an concept.
That’s why I say: solely make investments the place you’ve gotten deep experience. When you’re an ex-banker, again a fintech. You may add worth there. When you’re a former medical director, spend money on a healthtech firm you possibly can help.
It’s not simply “take money and go.” You’re primarily becoming a member of that startup as a co-founder. You’re now a group member. When you can’t assist the corporate hit its subsequent milestone—say, from $1K to $50K month-to-month income—you then shouldn’t be investing. As a result of in the event that they don’t develop, you lose your cash.
Conviction needs to be matched with dedication and competence. When you say sure, you’ve signed as much as assist them get to the following spherical. In any other case, you need to have simply stated no.
What makes a founder stand out to you?
Area experience. If I do know extra about your trade than you do, you then’re not critical. That’s the primary filter for me. It is best to know your house deeply.
The second factor is integrity. Founders underestimate how a lot traders worth honesty. There was a deal I handed on—regardless that I preferred the enterprise—as a result of I felt the founder was extra centered on constructing her model than the precise firm. I can’t give my cash to somebody whose priorities don’t align with mine. Motivation issues.
I as soon as requested a founder, “What would it not take to get this to $500K month-to-month income?” He checked out me and stated, “That’s blood cash.” That’s once I knew we weren’t aligned. When you suppose $500K a month is an excessive amount of, I’m considering $100M a 12 months. That’s a misalignment.
Area experience, integrity, and alignment on development imaginative and prescient. These three are key. Valuation might be mounted. However these issues are non-negotiable.
In your expertise, what do first-time angels usually get fallacious?
Valuation. They nearly all the time get it fallacious. Don’t attempt to worth a pre-seed enterprise—it’s too early. Use a convertible word. That provides you some management, and also you get to experience the upside with out getting caught on fairness too early.
Many angels additionally observe hype. If AI is trending, everybody begins chasing API startups—whether or not they perceive the enterprise or not. That’s harmful.
Additionally, by no means overpay. YC caps its pre-seed offers at round $2 million. I wouldn’t go greater than that as an angel. When you go too excessive, downstream traders will squeeze you out anyway by way of ESOPs or new fairness rounds. So use a convertible word, get in at a low cap, and ignore the hype.
When you may design the best African VC ecosystem from scratch, what three pillars would you construct it on?
Integrity and transparency—from each founders and traders. When you break that belief, you’re out. There needs to be no second possibilities when you misappropriate investor cash.
Accountability and penalties. You solely get one strike. I’ve seen founders waste investor cash, then present up rebranded, elevate extra, and faux nothing occurred. That shouldn’t be allowed.
Worth self-discipline and liquidity. No extra $100M valuations simply because. Our largest native acquirers—banks and telcos—gained’t pay that. They’ll pay $20M max, normally in money and inventory. So let’s begin from that actuality.
We should always begin valuing startups primarily based on EBITDA and revenue after tax, not GMV or projections, as a result of that’s what ensures liquidity, and liquidity is what retains this entire system alive.
