John Lombela: Blockchain filling in the gaps in the investment strategies


An interview with Cryptopreneur, John Lombela

Part 3 of 6

PNXT: And you have a specific interest in the African market. Why Africa?

I want to be able to make money for my investors, but as much as it makes you money, how can we then become as impactful as possible in society? So a lot of people come to me and say, “Hey, John? It was expensive to work with you and your fund yesterday”, but tomorrow my phone will be ringing all day. I mean, by next year, the minimum investment is going to go all the way to about $100,000.

Well, right now is about $10,000 for minimum entry tickets. But the whole idea is if, for example, to have $20 investors, and we will be managing a large portfolio of no less than $15 million, we’re making money for my investors. The idea, in return, is how can we empower a whole bunch of other entrepreneurs in Africa in the blockchain space. I’m all production and I’m interested in anything that touches the blockchain. That which is in the insurance sector, the medical sector, the banking sector, the logistics sector, whatever that is… as long as it has an aspect of blockchain, I am interested.

So the aim for us is to empower the black entrepreneurs from South Africa, Nigeria, Kenya, and the DRC through our investments. How can we then take their ideas that onto the blockchain for greater good, to solve whatever problem? Or we can stimulate the growth of Colombia using digital assets and so forth, and can we do it with blockchain technology? These are the things pushing forward at the moment. And the conclusion in this conversation is about whether it is one of the major themes for 2019. And maybe, going into 2020, our focuses will be more around the democratization of investment in the Fourth Industrial Revolution. Why am I saying that? And why is it that I’m so excited to be working with blockchain? This is massive.

If we think about companies like Amazon, Google, Apple, Microsoft, then Facebook and Uber, they are extremely stable.  There was a venture capital firm that invested $6 million in Uber in 2011. It was early on, and just about one year after Uber was just an idea. That particular venture capital firm managed to rack up about $9 billion two months ago, with about $540 million in cash, and the rest in stocks. That’s significant wealth creation in just about eight years; a lot of people don’t understand that.

To be able to create that kind of wealth, you need to have long or medium to long term visions. But most importantly, you need to have access to these opportunities early on. Now, how many people do you know out there who just have the $6 million laying around or even a million dollars to invest in an Uber opportunity early on or in an opportunity that is already very successful, that is worth almost half a trillion dollars in the market today? And how many people today have any opportunities? When we go to America, these opportunities are mainly for the qualified investors. These qualified investors are only investing with a minimum of $100,000. So not many people have access to these opportunities to invest.

The democratization of investment in the Fourth Industrial Revolution allows us to be able to create a different type of an economy – a token economy, based on these notions. Those are the things we are doing when we’re developing solutions.

One part that we are developing at the moment is called executive digital bank, which we plan to launch next year, in 2020. We develop new solutions for us to be able to provide tools and opportunities to anybody who wishes to invest, because people are often not like John. We want to invest. We don’t know how we don’t know where, not only in South Africa, of course, but the African continent as a whole. I want to be able to give these guys an opportunity to say “we’re leveraging blockchain technology. We’re leveraging the token economy first to stimulate growth on our economy. But this is how we can actually do that.” How do we do that so you can become a participant with the minimum entry ticket? Now we recognize barriers to entry, because of the blockchain technology, and somebody could potentially invest in a project for a minimum of $250, which is quite acceptable, or $500, or $1000… it will depend on how the project actually structured the deal. So now anyone can become a participant in that particular ecosystem. Those are the things I’m excited about. These are some of the things I believe are going to change the face of the world of investing. And this is why we are disrupting the investing world by bringing blockchain technology to it.

Continuing with the next question…

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