Panama drew international attention when it was discovered to be the thinnest land mass between the Atlantic and Pacific Ocean. A canal here could save traders the arduous 8,000 mile (12,875 km) journey around South America.

And so the mission began. The French gave it a shot for 9 years, but gave up after they lost 20,000 lives and beaucoup francs. The United Stated decided to give it a go, but its chief engineer soon became overwhelmed and quit. The project was expensive and unpopular. But determined to see the project completed, President Teddy Roosevelt made history as the first U.S. president to ever leave the country by making a public relations trip to the Panama Canal.  He stated, “while the debate goes on, the canal does also.”  As a result, the U.S. successfully finished the project 14 years later. The Panama Canal was one of the most ambitious – and ultimately successful – government projects of its time.

And so through human ingenuity, determination and sacrifice, the longstanding aspiration of connecting the two oceans was realized. This ignited an explosion of trade and approximately 5% of world trade passes through the canal today.

The U.S. has a mixed history with Panama. The U.S. originally helped Panama gain its independence from Columbia in 1903 by recognizing Panama’s sovereignty and sending battleships to prevent Columbia from reaching Panama’s shore. The U.S. even paid Columbia $25 million to recognize Panama as a country. Relations were strong and a grateful Panama sold perpetual rights of the canal to the U.S. However, Panamanians began to resent the fact that the Canal Zone was sovereign U.S. territory inside Panama. In addition, this national asset did not actually contribute much to the local economy because most of the laborers were American or third country nationals. A dispute on which flag should be flown inside the Canal Zone led to a 3 day riot, resulting in 20 deaths. President Jimmy Carter eventually divided control of the canal with Panama. A decade of drama ensued in the 1980s with the former head of Panama’s secret police and future president, Noriega. Noriega’s rise to power, international scandals and declaration of war on the United States led the U.S. to end Panama’s preferential trade agreement and stop paying canal fees. Noriega eventually gave himself up for arrest on charges of conspiracy to manufacture and distribute cocaine after the U.S. blasted rock music (Metallica and Van Halen) for 10 days outside of his Vatican Embassy asylum. In an effort to rebuild relations, full control of the canal was given to Panama in 1999.

So given this important history of the canal, it was naturally the first place I wanted to visit. I sat on the observation deck for hours, watching in amazement as several ships passed through one of mankind’s greatest engineering feats. Afterwards, I traveled onward throughout the rest of Panama. The remainder of the country was paradise – beautiful beaches, delicious food and coffee, breathtaking hikes and friendly people. In many ways it was like Costa Rica, but less expensive and less crowded. It not only connects two continents, but also appears to connect two different worlds from the skyscrapers of Panama City to the indigenous villages of the jungle.

The unique U.S.-Panama relationship is apparent as Panama continues to use the U.S. dollar in its economy, watch American television and is the only Latin American country where baseball – not soccer – is its most popular sport. 

See my Panama album for more pictures

The post Panama appeared first on Konrad's World Venture Project.

You can find the full article here: The Argument For Lean Modeling

The post Lean Finance for Startups (guest piece in Forbes) appeared first on Konrad's World Venture Project.

Bosnia and Herzegovina has emerged from its tragic recent history with an eye for the future, yet it remains a complex and diverse country. Although it is a country of only 4 million people, it has over 80 political parties and 3 presidents representing each of the major ethnic groups – Bosniaks (Mulsims), Croats (Catholics) and Serbs (Orthodox). It also has two sovereign territories within its borders – Republika Srpska (not to be confused with the country, Serbia) and the Federation of Bosnia and Herzegovina – each with its own form of limited government. As one could imagine, this makes governing the entire country and obtaining consensus a bit challenging. Bosnians have yet to agree on a text for the national anthem.  When I jokingly mentioned that they should simply sing “Oh Bosniaaaa and Herzegovinaaaa” over and over again, I was told that even this would offend some people in the Republika Srpska and select individuals who are still nostalgic for the former Yugoslavia days.

It only became a country in 1992 after the breakup of Yugoslavia. Prior to Yugoslavia, the country was under Austro-Hungarian (between WWI and WWII) and Ottoman (pre-WWI) rule. This diverse European and Middle Eastern background is reflected in its rich culture. The different ethnic groups mixed, intermarried and remained peaceful for many years until president Tito died and Yugoslavia quickly began to implode in the 1980s. While Tito had all the traditional dictator tendencies, he is remembered positively in the country as the glue that held Yugoslavia together. After Tito’s death, radical political leaders fueled ultra-nationalism and ignited a brutal civil war in order to grab power and land, conducting ethnic cleansing genocides in the process. The UN and NATO became heavily involved, but the fighting continued until Bill Clinton’s peace agreement was finally accepted in late 1995 – one of the outcomes included creating the country, Bosnia and Herzegovina. Relations between the various ethnic groups are back to normal for the people, but still remain greatly separated in politics.

The country has fought hard to overcome its past and if it wasn’t for the large number of destroyed buildings from the war that remain and a few “never forget” signs, it would be hard to ever fathom that a civil war occurred here less than two decades ago. The people are very friendly and European Union membership is a goal for the country. The country hosts a beautiful landscape that is ripe for tourism and its eager workforce could provide great opportunities for international commerce. However, it must clean up its political corruption and improve its economy before joining the EU or significant integration into the global economy becomes a reality. Unemployment remains very high at approximately 45% for the population and over 60% for the younger generation. As seen time and time again, when people are able to work and improve their quality of life, they rarely fight. It’s when conditions are tough that citizens are susceptible to brainwashing from power hungry politicians that highlight ethnic differences and assign blame. While I am hopeful that the memory of the war is still too close to everyone’s heart for this to happen again here, the people must focus on remembering how slippery of a slope it can be.

On a lighter note, although extinct in most of the world, the Yugo – aka, the worst car in history – can still be found in the country. And it won’t take long before you hear a few of the Yugo jokes that are still told today, such as: What should come with every Yugo? A bus timetable. Why are there rear-window heaters in the Yugo? To warm your hands while you push it. How do you instantly double the value of a Yugo? Fill up the fuel tank.

For more pictures, check out the Bosnia and Herzegovina album or my Facebook page.

The post Bosnia and Herzegovina appeared first on Konrad's World Venture Project.

You can find the full article here: Fast Company: How Startups Can Avoid The Series A Crunch

The post Raising Venture Capital for Startups (guest piece in Fast Company) appeared first on Konrad's World Venture Project.

   

There was an optimistic buzz in Kampala unlike I have seen in many countries. I spent time with some exciting entrepreneurial incubators – organizations such as FinAfrica and Mara Launchpad that support and fund start-ups, and the Grameen Foundation’s mobile app lab, which builds smart phone applications that address critical healthcare, education and financial needs of the poor. I also had the unique opportunity to meet handfuls of entrepreneurs that are working to leverage technology in order to address the needs of Africa. Throughout my stay, I saw inspiring uses of technology developed to solve real life problems, such as a smartphone app used in remote villages to assess an unborn baby’s health and heartbeat, or the ubiquitous use of cell phones for payment and banking since most of the people do not have access to a bank branch or debit card. This generation of young entrepreneurs has the drive and passion that they believe will put Uganda on the global stage. Many of the local entrepreneurs and investors seemed to look at the progress of Nairobi with admiration and a healthy competitiveness saying, “we can be like that – or better!”

Another very interesting – and surprising – discovery was that many Ugandans expressed extreme discontent with the popular Kony 2012 campaign. The moving and extraordinarily viral YouTube film was created to spread awareness to prioritize the arrest of the Ugandan cult and militia leader, Joseph Kony, by December 2012. Kony’s vast killing sprees and forced service of child soldiers has led to his place on the top of the International Criminal Court’s most wanted list, yet he is still at large in the region. Ugandans informed me that this video greatly misrepresented their country. Ugandans want people to come to their country for business and tourism, and the video made Uganda appear overrun by a guerilla militia group, even though the Ugandan military ran Kony and his Lord’s Resistance Army (LRA) out of the country in 2006. They were upset that most of the video was out of date. Secondly, while the Ugandans I spoke with appreciated the gesture to draw global attention to such a ruthless terrorist and criminal, they were offended by the organization’s strategy. They asked me, “After 9/11, how would Americans react if we all wore Bin Laden 2002 bracelets and put up ‘cool’ looking posters of him as if he was running for president or something?” That definitely drove their point home for me.

The country has certainly come a long way – especially from the murderous dictator days of Idi Amin in the 1970s and the brutal terrorization by the LRA until 2006. Uganda has opened itself up to foreign investment and aid, becoming one of the United States’ closest allies in Africa. However, it still has a long way to go to be globally competitive. The government remains one of the most corrupt in the world. Kampala suffers from frequent blackouts due to the government failing to pay its fuel bills, and Uganda is one of only two African countries where AIDS rates are increasing. Speaking with most anyone in Kampala paints a clear picture of growing discontent with the government. When Uganda’s president, Yoweri Museveni, took power, he stated that “the problems of Africa, and Uganda in particular, are caused by leaders who overstay in power.” However, he has remained in power since 1986 and conveniently abolished presidential term limits during his tenure. The people may have very little confidence in their government, but they also feel encouraged, empowered and ever connected to the world, stating that it is only a matter of time before Uganda becomes a thriving nation – whether the government gets on board or not.

Click here for more pictures: Uganda Pictures

The post Uganda appeared first on Konrad's World Venture Project.

Mozambique is one of Africa’s last frontiers. While it can be quite difficult and very time consuming to make your way up the 1,500 miles of coastline, it is well worth it if one has the patience and the perseverance to travel through this long and undeveloped country.

I started in Maputo, the country’s capital city, and headed north, spending several days in an old, 12-person mini-bus that was turned into a 22 passenger vehicle. Fellow passengers also included live chickens, bags of raw fish, suitcases and random household supplies. To add to the inconvenience, each bus’s departure time was “when it’s full” – which the drivers took to a much higher level than I thought was physically possible. I often had to wait 2-3 hours for the bus to “fill.” After participating in multiple circus-like scenarios each time a bus unloaded and just before I admitted defeat to the transportation system, I was able to live “the dream.” My office for the week became a hammock on a nearly abandoned, three mile stretch of picturesque beachfront equipped with crystal clear water, soft white sand and warm weather. If that doesn’t sound amazing enough, most of my meals consisted of fresh barracuda and crab that I had watched be pulled out of the water just moments before by a local fisherman and I was able to partake in world class diving and boat trips to nearby islands throughout the week. And to top it off, this lifestyle cost next to nothing according to developed world standards.

After 10 years of fighting Portugal for independence, the Portuguese left Mozambique in 1975 – destroying as much as they could on their way out. This exodus left Mozambique’s economy in disarray and the country quickly fell into a 15-year civil war. In order to combat the lack of resources, the country turned to the Soviet Union and established a one-party Socialist state and received substantial amounts of foreign aid from Cuba and other Eastern Bloc nations. Though Mozambique has been considered a democratic republic since its first elections in 1994, one can still see the remnants of the socialist era in the major streets named after Karl Marx, Mao Tse Tung and Vladimir Lenin.

While the country remains one of the poorest in the world with average annual incomes of approximately $1,000 (compared to about $50,000 per person in the U.S.) and most economic activity remains in the “informal economy” (e.g., selling oranges on the side of the street), 2011-2012 may be long remembered as the turning point for Mozambique. The country’s first overseas export of coal was in 2011 and vast amounts of natural gas reserves were discovered in 2012. These developments have transitioned Mozambique into an export-based economy and energy hotspot, accelerated economic growth, inspired a construction boom and triggered an influx of foreign investment. Its currency, the metical, even became the world’s best performing currency against the dollar. The country is tired of fighting and its people – at least in the larger cities – felt optimistic and excited to become a contributing member of the global economy.

And after 30 years of fighting, what does one do with all the guns? Well, besides putting an AK-47 on the nation’s flag, there is an inspiring studio in Maputo that welds them into pieces of art.

Click here to see more of my pictures from Mozambique

The post Mozambique appeared first on Konrad's World Venture Project.

It was a dark, rainy day in Dublin and I decided to take shelter in a small pub. With a pint of Guinness in hand, I listened to an old, Irish man play his guitar and sing folk songs about Ireland’s beautiful country side, fight for independence and love of drinking while the entire bar sang along. It is rare that prior perception and reality are aligned when traveling, but this scene was exactly how I had pictured Ireland in my mind. As time passed, I realized a common theme in all of the songs – a pessimistic outlook combined with a spirit of perseverance. It was a “times are tough, but life goes on” perspective that appeared to be engrained in the Irish psyche. As the guitar player sang and the people toasted about how all the jobs were gone yet the Guinness still flowed, it hit me how beneficial this attitude might be to their economic survival. Ireland was in a similar position as Greece and Spain in its inability to pay its debts and forced to face harsh austerity measures. Yet, appropriate steps were taken, there wasn’t mass rioting against austerity and recovery appears to be somewhat on its way.

Perhaps the Irish were simply too used to hardship, or too stubborn, to let it interfere with their daily life. They have a knack for letting life go on and even embracing their troubles – giving each person a better story to tell and greater respect for having endured the suffering. The famous Irish poet and playwright, William Butler Yeats, humorously stated it well: “Being Irish, he had an abiding sense of tragedy, which sustained him through temporary periods of joy.” From wars to gain independence from Britain, civil wars over the treaties with the United Kingdom, religious clashes between Catholics and Protestants, terrorist attacks conducted by the IRA, mass emigration and a weak economy certainly made the 1900’s a tough century for Ireland. Even up until the 1980’s, standards of living were far below its European neighbors, unemployment was close to 20% and a third of Ireland’s population lived below the poverty line.

But that all changed in the 1990’s when things started to boom for the small island country. European aid and investment stimulated growth in the economy and the country began to build its infrastructure. Business incentives and low corporate tax rates attracted foreign companies looking for an easy entry point into EU markets. In this decade, Ireland went from being one of the poorest countries in Europe to one of the wealthiest and unemployment fell from nearly 20% to 4%.

This rapid growth, optimism and foreign investment was great for the country, but soon led to an unsustainably high construction and real estate boom, followed by an influx of international derivates and complicated financial instruments. The Irish banks had cheap foreign money and lent it out excessively. As Vanity Fair and The Economist stated, “Left alone in a dark room with a pile of money, the Irish decided what they really wanted to do with it was to buy Ireland. From one another” and “the twin articles of independent Ireland’s faith, Catholicism and nationalism, were eclipsed by material ambition: the desire to get on, to improve one’s station in life.” The Irish continued to buy high and sell higher, getting very rich in the process.

Then Lehman Brothers collapsed in 2008 and the credit crisis commenced. The inflated economy crashed and all six of the main Irish banks nearly went bankrupt, saved only by audacious government guarantees and an International Monetary Fund, European Union and European Central Bank bailout. After a decade of extraordinary growth, wealth creation and optimism, the “Celtic Tiger” ended up right where it started: high unemployment, a weak economy and mass emigration. The country went from being a case study for economic success to one the frailest economies in the developed world.

The government cut public spending significantly in compliance with bailout terms and the population complied. The country has done a surprisingly effective job picking up the pieces of their economy under such austerity and its financial condition has improved. It isn’t as bad as the other crisis countries – Greece, Spain, Portugal, Italty – but clearly worse than the rest of Europe. So while it is looking better relatively, Ireland, and the rest of the Eurozone, remains a primary concern for the interconnected global economy and financial markets.

And the Irish people? Many argue that the tax payers are paying too high of a price, but the general population seems to have shrugged their shoulders and carried on, equipped with new stories to tell about that one time when they were all rich.

The post Ireland appeared first on Konrad's World Venture Project.

Somewhere in between the international and cultural vibe of Istanbul and the ancient city of Ephesus, I came to the conclusion that Turkey is one of the most fascinating countries I have been to. Medieval, yet modern. European, yet Eastern. Islamic, yet secular. Progressive, yet conservative. I realized that these fascinating sets of contradictions make it one of the oldest and newest places in the world. This sense of awe was heighted by its breathtaking views of the Blue Mosque alongside the Bosphorus, delicious plates of kebab and humus, over-the-top hospitality and rich Biblical and Ottoman Empire history. However, as an entrepreneur and investor, I couldn’t help but take note that this European and Middle Eastern hybrid was not only on the rise economically, but that it has emerged to become a strong regional power and an important actor on the world stage.

Turkey took dramatic steps to chart their own path in the world. This transformation was led by the war hero, General Atatürk (which literally means “Father of the Turks”), after he took power in 1923 and forced Turkey to turn away from its past and embrace European culture in order to “catch up” to the West. He created a secular republic, traded the Arabic alphabet for Latin letters and banned the veil in order to make the country more European. However, 20 years ago, Turkey remained a typical developing country with a weak democracy controlled by the military, high debt levels and inflation, a poor economy with low growth and a weak private sector.

That is no longer Turkey today. In 2002, Turkish voters rejected both the leading secular parties and Islamic parties, choosing one that both supported a moderate version of Islam and worked closely with the West. Its economy has surpassed the trillion dollar mark and it has developed a stable democracy and robust private sector. Since then, per capita annual incomes rose threefold, from $3,500 to $10,500. After ongoing battles to try and become a member of the European Union, Turkey’s non-acceptance now appears to be a sign of good fortune. Its economy has grown much faster than the rest of Europe and without the burden of having to support bankrupt states. Turkey no longer sees European integration as a necessity to compete in the global economy as it is able to look towards the Middle East, Central Asia and East Asia – in addition to Europe – in order to take advantage of its natural geographical and cultural advantages.

Turkey is a prime example of the rising powers described by Fareed Zakaria: “We still think of a world in which a rising power must choose between two stark options: integrate into the Western order, or reject it, becoming a rogue nation and facing the penalties of excommunication. In fact, rising powers appear to be following a third way: entering the Western order but doing so on their own terms – thus reshaping the system itself.”

The Turks have had a long history of leading the Islamic world. This will likely hold true in the future as Turkey’s economy and military have become the most powerful in the region and it continues to gain influence with its neighbors and the world. This new role will likely provide a stable and positive platform for the region, particularly in the midst of the instability throughout Syria, Egypt and Iran. Turkey is a rising global power that has shaped its own policies to meet its needs, and by the looks of it from my recent visit, it appears to be working and its citizens are pleased. But then again, if a country gets its economy right, most of the other issues simply fall into place or get ignored.

The post Turkey appeared first on Konrad's World Venture Project.

When you mention Rwanda, most people immediately recall the horrific genocide that occurred in 1994 where the Hutu majority brutally massacred an estimated 800,000 Tutsis and moderate Hutus in the span of just three months. When you mention that you are traveling there, people think you are crazy. How can the home of the worst genocide in African history and one of the worst in modern times be an okay place to visit? After all, this wasn’t simply some dark time in “history,” it was less than 20 years ago.

Like so many places that I have traveled to, common perception varies significantly from reality.

Rwanda has done an incredible job of overcoming its horrific past and quickly pointing the country towards the future with a spirit of optimism, unity and peace. They government has taken steps to remove tribal identities and unify its people as Rwandans, not Hutus or Tutsis.

The capital city, Kigali, was a stark contrast from the rest of Africa. The streets were impeccably clean, everything was organized, safety was a non-issue, buildings were modern and even the boda boda motorcycle taxis carried spare helmets for passengers. In African cities, street merchants aggressively push useless products to tourists, like rakes and rat poison, or the same “local” miniature statues and masks you find everywhere else (made in China, of course). In Kigali, street merchants primarily sold USB sticks, Oxford English dictionaries and Economist magazines. And when I told one guy that I didn’t want his Economist magazine because I receive it on my iPhone, he didn’t follow me for 5 minutes attempting to negotiate or convince me to buy it anyways, he simply laughed and yelled out “Ahh, technology! It’s changing our world!” and gave me a fist pound. These are all small insights into the minds of Rwanda’s citizens and signs that the country is heading in the right direction.

No African country has done more to eliminate corruption, remove red tape and make it easy to do business. The economy has more than doubled in the last 10 years and even though people are still poor, average incomes are rising. The government recently moved boldly to switch the country’s entire education system from French to English to make the country more economically competitive around the globe – as well as to turn its back on its formal colonial influence – which aligns with President Kagame’s ambitious plan to make Rwanda “the Singapore of Africa.” The country opened the doors of its own stock exchange in 2011 and now lists four companies. Kagame has also made meaningful social progress in health care, education, women’s rights (nearly half of the members of parliament are female), rule of law, agriculture and internet technology.

However, the country is facing serious near-term criticism and challenges. Kagame is increasingly accused of aggressively preventing political opposition and he has won every election with more than 90% of the vote. He has also been accused of human rights violations by continuously invading and plundering natural resources from Congo. In June 2012, The UN Security Council released a report accusing Rwanda of supporting rebel groups in the Congo by providing weapons, recruits and even its own soldiers. While Western countries have historically been hesitant to criticize Rwanda, likely due to their strong strategic partnership in the region and guilt from not doing more to stop the genocide, they have begun to respond by suspending and delaying small disbursements of foreign aid – which still makes up a large portion of Rwanda’s budget.

Rwanda is in a challenging position and many question the legitimacy of its democracy. However, it is a relief to see foreign aid dollars actually used to improve the lives of citizens and it is tough to dispute the significant progress the country has made to create peace, improved standards of living and a position for itself in the global economy. Rwanda gives one many reasons to be optimistic about the future of the country and its ability to emerge from its dark past towards a bright future is beyond remarkable.

Watch a great interview with Rwanda’s President Paul Kagame, conducted by Fareed Zakaria: http://www.youtube.com/watch?v=yHPn1TfjmGQ

The post Rwanda appeared first on Konrad's World Venture Project.

“Shoot me, white man!” yelled a group of children as they ran towards me in the Soweto slums, one of the poorest and oldest townships in Africa and a historical symbol of the apartheid years. In shock, I began contemplating how I could possibly respond to these young children who were apparently fighting back against the brutal history of racism experienced in their country – especially their township. At the moment they completely surrounded me, a nearby man in a Yankees hat smiled and told me that they were telling me to “shoot” a picture. After a huge sigh of relief and a small laugh, I used my iPhone to let them feel like Hollywood stars as they posed, danced and fought for the closest position to the camera.

This moment of misunderstanding occurred not far from the former house of Nelson Mandela and led me to contemplate how much one man’s leadership can change the perspective of a nation. Almost 20 years since Nelson Mandela and the African National Congress (ANC) took power and ended apartheid, Mandela’s legacy of reconciliation remains ingrained in the national character. Mandela guided black South Africans to forgive their oppressors instead of take revenge, focus on the future instead of the past and become a “rainbow nation” that all of its races and tribes could identify with. This spirit was exemplified on my trip to Robben Island, the infamous island prison where Mandela and other black leaders were held for decades. Many former white prison guards and former black prisoners are still living together on the island. The oppressor and the oppressed now live side by side as friendly neighbors, attending the same church, sending their children to the same school and working at the same museum.

South Africa is one of the greatest success stories of recent history. However, it is not without its share of problems. Under its first world façade, it remains a third world country with significant poverty, crime, HIV and AIDS infection rates and corruption. There is still significant racial inequality and unofficial segregation throughout society and the economy. Many people live without access to sufficient sanitation or quality education.  The unemployment rate remains around 25% and approximately 75% for blacks in rural areas. It is also the only major country where more people receive social grants than have a job and welfare payments are the fastest growing segment of the government budget. Strong unions have hurt economic growth by continuously demanding higher wages and inhibiting an increase in jobs for the broader population.  It remains a relatively closed and protected economy, a legacy of apartheid, and many of the industries are still controlled by the state.

Some things simply take time to change, but the lack of progress can also likely be blamed on the lack of political competition. While South Africa has a real democracy, free press and fair voting process, the ANC has remained unchallenged since liberation. It’s customary for a liberation movement’s party to enjoy an extended period of unchallenged loyalty, but as stated by emerging market investor, Ruchir Sharma, “the ANC has been living off the liberation dividend for close to two decades.” Perhaps it will take a new generation to begin holding the ANC accountable for additional progress.

Despite these challenges, South Africa is a free and stable democracy with vast amounts of natural resources and several competitive multinational companies. Its businesses have begun to aggressively expand throughout the rest of Africa, which they neglected to do for decades, and are well positioned to benefit from opportunities in the region. I am hopeful that South Africa can emerge as a strong leader in an emerging continent and be a shining example to some of the African countries for how to overcome the vicious cycle of racial and tribal conflict.

The post South Africa appeared first on Konrad's World Venture Project.