An Angel's Perspective: Eunice Ajim

Hi 👋 Welcome to the Angel Insights newsletter from VITALIZE.

Each month, we feature angel investor interviews to give you unique perspectives, tips, and strategies on early stage angel investing. Share with a friend who may want to subscribe and learn about angel deals.

This edition features Eunice Ajim, an angel investor with four years of experience doing 7-8 investment deals annually. Her primary area of interest is SaaS solutions addressing unique challenges specific to Africa.

How did you become an angel investor?

I discovered Angel investing while I was building my second startup. In 2020 when the pandemic happened and nobody wanted to go back to work, I convinced my co-founders to hire in Africa. We faced so many challenges like cross border payments, payroll and even finding the right talent.

I knew there must be a better way to work with Africans, so I started looking for solutions to my problems. That was my introduction to the startup space on the African continent. Before long, I realized I had invested in over 10 African tech startups by the end of 2021.

What is your favorite thing about being an angel investor?

Witnessing the growth and success of these early-stage startups brings a sense of satisfaction, knowing that I've played a part in their journey towards making a positive impact in Africa. I am motivated by the stories of talented African founders and determined to contribute to their success, giving back to the continent that has given me so much.

What is one lesson you've learned as an angel?

It’s about the team, not the idea. The founders should be passionate, experienced and have a track record. Great teams pivot on bad ideas, but bad teams can't execute good ideas. You invest in people, not products.

Any advice you would give to a new angel investor?

Never invest in what you do not understand. Understanding the opportunities you invest in is key to making informed and successful decisions. Only invest what you can afford to lose. Angel investing can be very risky, so decide what you're comfortable losing before investing. Diversify your investments. No matter how promising a company seems, it's still one company. I’ll rather invest $5k into 10 companies than $50k into one. Lastly, I’ll never invest alone. I’ll rather join a syndicate group of reputable investors with a track record of picking great deals than try and find startups on my own.

What is the most important part of your diligence process and why?

For me, the founding team is the most crucial aspect of the diligence process. A brilliant idea in the hands of an incompetent team is unlikely to succeed. The people, not the idea, determine whether a startup is successful. The team's background, experience and skills must align with what the startup needs to make it successful.

Any adjustments you've made after angel investing for awhile that made a difference?

Over time, I've learned the importance of diversifying my portfolio to manage and balance my risk exposure. It’s just smart to hedge my bets knowing fully well that over 70% of startups will fail. This is why I decided to launch a fund that’s focused on solely investing in African startups at the very early stage with the intentions of writing 50+ checks into these companies.

What do you think the future of angel investing will look like?

Angel investing would become more accessible to a broader range of individuals, not just high-net-worth individuals. Crowdfunding platforms and investment syndicates are beginning to democratize the process, allowing more people to participate with smaller check sizes.

What else do you think new angels should know, if anything?

Be patient and have a long-term perspective. Quick returns are rare, so be prepared to wait for the right opportunities to mature. It can take years for a startup to exit or go public. Most likely, it will take longer than you anticipate. Also, angel investing is high risk, high reward. Investing in startups can be exciting, but it’s not for everyone. Think of angel investing as a casino where you're the house. You won't win every hand, but over time you'll come out ahead.

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Thanks for reading, and I hope you’ve been inspired today! 🙂

Peace, love, and angel checks,
GaleforceVC