"Ability to Effectively Communicate with Investors is a Top Skill," says Investor Basil Moftah on The Perfect Pitch Podcast

Last week I finally got around to listening to The Perfect Pitch Podcast, episode 4, where Lucidity Insights’ Chief Content Officer, Erika Welch sat down with Basil Moftah, a prominent startup investor in the region.” For this month's episode review of The Perfect Pitch Podcast, we checked out Lucidity Insights’ podcast interview with Basil Moftah, who is a prominent Egyptian adviser, investor, and board member. Up until January of this year, Basil was the General Partner at Nclude – a Fintech focused Fund, financially backed by Egypt’s three largest national banks to the tune of US $85 million. Basil has since left this post, with intentions to start his own VC fund.  

A man of many hats, Basil has built networks between seasoned industry professionals across continents while leading startup founders to create successful, disruptive tech companies. Our chat with Basil took me on a journey through business and venture capital successes driven by his adaptability, resilience, and visionary enterprise. 

Born in Chicago to Egyptian parents, but raised in the Carribean country of Trinidad and Tobago, Basil's childhood was marked by a rich tapestry of cultural experiences. Returning to Egypt at the age of eight, he found himself with the task of integrating the diverse identities he had garnered over his childhood around the world, and navigating the complexities of feeling like both an insider and an outsider at the same time - wherever he went. This unique perspective he attained would later become a cornerstone of his approach to business and investment, enabling him to look at all opportunities openly, curiously, and with a bird's eye view. 

Basil pursued his higher education in engineering at the American University in Cairo, but found that his true passion lay beyond the confines of technical schematics and factory settings during an internship at Procter & Gamble. There, the mundanity of procurement and the disconnection from global impact drove him to reassess his career trajectory as he learned a critical lesson luckily early on in life: “I knew very quickly I wasn't going to do engineering. I had more fun doing things like model United Nations, model Arab League,” he said, “and knowing what you don't want to do in life is just as important as knowing what you want to do.” 

Thus, Basil decided to pursue opportunities that aligned more closely with his interests in global affairs and business. He moved to Italy to join Reuters, a spontaneous shift that aligned with his interest at the intersection between technology and business. There, Basil was exposed to corporate venture capital through early investments in internet companies like Yahoo, which not only shaped his understanding of tech disruption but also affirmed in him the potential of VC to drive significant impact as well as financial returns.  

Basil earned his MBA from Harvard Business School to navigate global finance within Reuters, managing business units across Europe and the Middle East, and leading acquisitions like that of Zawya.com. His corporate journey came full circle when he transitioned back into VC joining Global Ventures in the Middle East. His work centered on identifying and nurturing startups that could leverage technology to transform traditional business landscapes, particularly in fintech and healthtech. 

While at Global Ventures, Basil led the work of managing a specialized fund focused on fintech solutions that would help address Egypt’s remarkable road to financial inclusion. According to statistics from the Central Bank of Egypt, Egypt has made significant strides in its attempt to increase its financial inclusion rate amongst the population of over 16 year olds. In 2016, just 8 years ago, Egypt had a financial inclusion rate of 27%. This meant that only 17 million citizens had access to a bank account, mobile wallet, or Egypt post account or prepaid cards. By the end of 2023, that number had surged to achieve 71% financial inclusion rates, with nearly 47 million considered “banked” or part of the financial system. 

Egypt’s Financial Inclusion Progress 

Source: Central Bank of Egypt 

Basil led the spin-off of this specialized fintech and financial inclusion focused fund out of Global Ventures to become a stand-alone specialized fund in 2022, called it Nclude (in reference to financial “inclusion”), and moved to Egypt to be close to the GPs and the startups it would build the ecosystem with. Nclude’s mission is to foster a sustainable ecosystem where technology and finance intersect to create impactful social and economic change in Egypt. Basil has since left Nclude to launch his own venture capital fund, after recording the podcast episode in late 2023.  

On the podcast, as investors often do, Basil broke down what makes a perfect pitch, what his pet peeves are that drive him mad when it comes to founders on a fundraising mission, and he also doled out some sound advice. If you prefer to hear it directly, check out the episode here at the Perfect Pitch Podcast. 

1. Founding Teams Make or Break the Startup 

When asked the question of the hour, Basil answers that it is always the founder and founding team that make or break a pitch. As such, we went on to ask him a series of questions to guide said founders, and our listeners, on how to get their startups off the ground. 

2. This Annoys Investors the Most  

Basil was quick to point out just how easy it is to figure out what investors are interested in as they leave breadcrumbs all over the place, from their corporate or private websites, LinkedIn, on podcast interviews that are publicly available, or at filmed stage events. So when it comes time for entrepreneurs to pitch their ideas, the last thing any investor wants to hear is some long-winded speech about an investment in a country or a sector that they're not interested in. Basil says it’s a sure-fire way to immediately discredit yourself. We've heard this piece of advice from so many investors: do your research and match your pitch to what investors are actually looking for. 

3. Be Transparent 

Basil tells us that transparency is key. Investors are very sensitive to this point, because if someone doesn't share information, it could make or break a business. So the ability for a founder to be completely transparent and communicative is fundamental to fundraising. Founders should be upfront about business operations, challenges, and strategies, as this openness not only builds trust but also enables investors to provide more effective support and guidance. 

"When I give you the money, are you taking it because you think you deserve it? Or are you taking it because you are taking on a responsibility to grow my money? I love entrepreneurs who are like, I know what I'm taking from you is a responsibility, and because it's a responsibility, I will tell you everything I'm going to do with it." 

4. Think Two Steps Ahead 

Basil shares the best advice he ever received from his older brother, Samir, which is to always think two steps ahead. It is never just about your next move, but what follows after that, because thinking ahead ensures you can not only anticipate future opportunities but also prepare for any challenges that might arise. 

What he means, for example, is, if you want to build a global business, you need to show that your product can scale in more than one market, "so you'd better be in two markets already before we can even start talking global." 

5. Know When to Pivot 

Don't be afraid of honest conversations, especially those challenging whether it’s more beneficial to continue your vision or reconsider the venture. We've all heard the spiel of never giving up, which is beautiful in spirit, but sometimes we make irrational decisions based solely on past investments, so rather than fall prey to sunk cost fallacy, Basil encourages founders to consider pivoting when necessary to leverage accumulated experience and utilize resources elsewhere.  

"There is grit in entrepreneurs, and that's one of the key things investors look for, it's great, but it can't also be your Achilles heel. It's a cliche, isn't it? Because often people's biggest strength is their biggest weakness, and you see that in entrepreneurs all the time, where you're so stubborn to the point that you can't see the way through difficult situations or know when to say enough is enough." 

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Are you an entrepreneur hungry for more industry insights and advice on the startup scene? Don’t miss the complete episode with Basil, which you can access and listen to or watch the podcast at LucidityInsights.com, or find the Lucidity Insights Podcast on Spotify, YouTube, Apple Podcasts, or your preferred podcast streaming service. 

You can find this episode and more from the Perfect Pitch Podcast at: LucidityInsights.com ; YouTube ; Spotify ; and Apple Podcasts.