Romeo Kumalo is a South African businessman who left Vodacom to co-found his venture capital firm called Washirika Holdings set to invest in the ICT and clean energy sectors. He is also a Shark on M-Net’s Shark Tank. He discusses with Thriving what it takes to be funded today in South Africa.
Tell us about your background over the past 20 years?
My background has been media. I transitioned from media to telecoms and spent over 10 years running telecoms business across the African continent. And now as an investor I am in a range of businesses.
Give us an overview of Washirika Holdings?
We are a venture capital company focusing on investments, mainly in clean energy, property and businesses in the ICT sector. We invest in technology companies and start-ups.
Do you mainly invest in existing businesses?
We do look at start-ups, especially those with great innovative ideas. I saw a lot of start-ups on the Shark Tank show and I invested in one or two. But we prefer to invest in busineses that are already generating revenue and businesses that already have contracts that require capital to scale up.
As an investor entrepreneur, do you work alone or with a team?
We have a small team that looks at investments. We have investment criteria, an investment committee that looks at investments but generally we like to employ people in the businesses where we invested. So the head office team is very small. It’s a team that looks at the investments we have already done.
Was it a natural transition to become an investor or entrepreneur?
No, I never thought I would become an entrepreneur and private investor. I spent a lot of my time in corporate. But when the entrepreneurial bug steps in and bites you, you want to step out of corporate and do your own thing. I thought it would be best for me at a certain point in my life, given all the experience that I have gained in corporate over 20 years and managing big businesses in corporates across the African continent.
What are the three things you look for when considering to invest in a business?
We like to invest in people with passion, who understand their businesses and have already started a business. We invest in people and in commercially sustainable ventures where we can add value in the long term. Businesses that will create jobs and would be commercially viable in the long term.
What advice do you have for entrepreneurs who seek guidance and capital?
More young people should start their own businesses and stop looking for jobs after graduating at universities. Rather look at how to start their own businesses.
