Banks Told Me I Was Too Young to Buy Stocks – Tomie Balogun on why she entered the investment world
Banks Told Me I Was Too Young to Buy Stocks – Tomie Balogun on why she entered the investment world.
Tomie Balogun did not begin with the aim of providing widely sought-after financial insights to more than 60,000 Millennial by 2021. However, when she learned she was having difficulty growing her wealth while working in various corporate positions, she decided to take action.
Tomie fintech startup, The Green Investment Club is on the verge of pledging a six-figure sum to a venture capital (VC) vehicle dedicated to investing in African startups. TGIC has invested more than $14 million in small and medium-sized companies, resulting in over 2,000 jobs. Additionally, Tomie is the founder of The Vestract Company, a forum for financial education and investment opportunities.
Of course, none of that money came from a single source. It comes from hundreds of Nigerian millennials who would not otherwise be willing to contribute to a venture capital firm's investment capital base.
About every week, news of an African startup earning funding breaks. However, knowledge of how to sort through the risks associated with investing and the investing process is not as widespread in Africa as it is in other parts of the world.
Nigerian women account for 70% of the TGIC. This likely indicates that women comprise a more significant proportion of the population in need of investment expertise, especially in African startups. Additionally, it may mean that more women are more receptive to business.
“One of the primary reasons TGIC has more women than men is that I, as the creator, am a fellow woman who has used technology to solve a problem,” Tomie explained.
As with other subsectors of technology, women find it easier to connect with technology goods, clubs, and innovations and create their own when there are other successful women in the industry.
Until people are aware of a startup's fundraising efforts, they will not consider investing their money. Lack of knowledge is a significant barrier that prevents people from taking advantage of credible investment opportunities.
When she founded TGIC, she anticipated the day when young people would invest in venture capital firms and other resources that would help them achieve financial freedom. However, the degree to which individuals may invest is often limited by the amount of money available. For you to invest as a Limited Partner in most venture capital firms, the entry fee can be as high as $100,000 or more, depending on the company.
Tomie suggested that one way to address this is to use the collective investment power of many citizens. By investing $2,000 each, twenty individuals can form a limited partnership and invest in critically acclaimed startups through a venture capital vehicle. A growing number of women are pursuing careers in venture capital through this path.
You're too young to invest in stocks?
Until recently, investing in stocks, bonds, and many other projects in Nigeria's business sector was difficult. In 2014, Tomie revealed she was turned down by banks who said she was too young to invest in the stock market.
After identifying investment opportunities, the numerous procedures required before you can obtain dividends deter many from taking this path. Rather than that, people turn to dubious investment opportunities such as the recently-crash MBAforex, which have lower entry barriers and higher returns.
She devoured books, researched investing software, and discovered new ways to invest capital. Her blogs on the subject drew comments from people seeking enlightenment, and she centered the TGIC community on that desire.
Tomie's first investment was in a business with a similar business model to Uber. Uber had not yet expanded into Nigeria at the time, and she invested money in the startup alongside some friends.
The business model was as follows: individuals in need of a ride to and from work paid a subscription fee to the startup. A designated driver will transport the individual to work and then return to give him a ride home.
The investment enabled the startup to purchase additional vehicles, which increased business, but Tomie and her friends were burned. "I learned a critical lesson back then," she explained. The integrity of the individual in whose business you are investing in is critical."
The most frequently given responses by African entrepreneurs to the question, "what are your top three business challenges?" " is currently fundraising. It is even more true for women-led startups than for male-led startups, indicating that more Africans must believe in and invest in African businesses.
However, investing in the proper startup requires a certain level of intelligence and a certain amount of capital, which may not be available at the outset. Tomie's path from being bankrupt to be able to spend wisely demonstrates that both are possible.
