🤑 Ka-ching! When That VC Money Hits...

Welcome to the 58th edition of ፍራንክ Digest!

Your weekly brief on all things Finance and Investing. Quick, enjoyable reads for busy professionals in 5 minutes or less.

Here’s what’s coming your way:

• 🤑 Capital Ventures: Trip Worth Taking?

• 🌊 The Next Big Fintech Wave Won’t Be Payments—It’ll Be Personal

• 🗝️ The Key Takeaways

Thanks for reading!

Venture Capital—Delivered to Your Doorstep (No Tip Required)

Funding

So, you’ve got a big idea. The kind that keeps you up at night dreaming about “the magic carpet.” But dreams need funding—and no, your auntie’s በዓል cash handout doesn’t count. 

Enter Venture Capital (VC)—the financial fuel for startups with serious growth potential.

VC spots your talent and says, “I’ll back you, but I want a piece of the pie.” It’s equity financing—meaning VCs invest money into your business in exchange for ownership. And yes, they’re going to have a say in your next moves.

So, Who Are These Mysterious VC People?

Venture capital firms aren’t just loaded individuals throwing cash around (wouldn’t that be nice though?).

They usually raise money from– high net-worth individuals; family investment offices; investment banks; pension funds; and insurance companies. Basically, those that can afford to wait a few years before seeing a return, and aren't fazed by a bumpy ride called risk.

The Three Stages of the VC Rollercoaster

🍼 Pre-Seed

The “napkin sketch” phase. You’ve got the idea, maybe a deck, and possibly a friend who's agreed to be your Chief website developer. 

Time to find an accelerator program, a pitch, or someone who believes in your dream more than your current bank account balance. Turning your idea into a concrete business plan.

You join an incubator like Orbit Innovation Hub or blueMoon (VC backed hubs).

🌱 Seed Funding

You’ve got a prototype or Minimum Viable Product (MVP) and now need cash to build, test, and take it to market. Revenue? Still a fantasy. Expenses? All too real. So VCs swoop in to cover the bills until you make it.

🚀 Early-Stage Funding 

You’ve launched, seen some traction, and now need more fuel to grow. Production, hiring, marketing—this is where things get real, and real expensive. You grow to a scale that turns your business profitable and able to stand up against competition.

What’s in It for the VCs?

They’re hunting for ‘home runs’—businesses that can give them returns way beyond what they'd earn from safer bets like bonds. 

But here's the kicker: most startups don’t make it. In fact, over 75% of VC-backed startups fail and never return their investors’ capital. Only 5-7% of deals actually generate the lion’s share of profits for VCs. High-risk, high-reward...