February 24, 2006
everybody wants love
Rick Segal’s new V.C. idea, as told by Shel:
He’s a believer in micro financing and has become convinced that small investments spread over a large number of entrepreneurs with the right talent could be very lucrative for the right investors.
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well done big guy
And I will Blog for it!
http://theheadlemur.typepad.com/ravinglunacy/2006/02/will_blog_for_s.html
Everybody needs love.
I commented on micro-finance over at ParkParadigm which has a series of posts on the same or related subject. As I said there, a colleague of mine took some time off to get involved in this same business, but here micro-loans to individuals in developing countries. The take-away from that was that the recovery rate on the micro-loans (how many people paid back) was extremely large — a lot larger than what one would intuitively expect.
Hope this doesn’t appear twice!
Sometimes it doesn’t take a lot of cash to prove a business, move it to a point where it will succeed or fail on its own merits. If you can find a motivated, talented individual with a craft or idea who will work their proverbials off to succeed and you like the business why would you not provide some level of finance?
The key — as said in the original article — a one off micro-finance exercise is a bet (and there is nothing wrong with that) but a series of micro-finance exercises is a portfolio investment (and there is nothing wrong with that either but you don’t lose it all if one fails — indeed you may only need one success)
Hugh — now, can you match global microbrand with (global) microfinance .. ?
Trying to CoComment this but having problems