Facebook to Get an African-American Board Member…Soon?

Facebook has been on the hot seat as more information comes to light about the role it played in Russia’s meddling in the November 2016 election. The hot seat treatment brought the company’s COO, Sheryl Sandberg, to DC for an exclusive interview with Axios co-founder Mike Allen to discuss the situation and what Facebook was going to do about.

While in town Thursday, Ms. Sandberg visited with the Congressional Black Caucus. Apparently, one of the points of conversation was when Facebook was going to appoint an African-American director. CBC Chairman Cedric Richmond said after the meeting that Ms. Sandberg had committed to adding an African-American to Facebook’s board soon. It doesn’t make sense that no person of color sits on Facebook’s board, granted this applies to much of corporate America. That said, the question now is who would be a good candidate to join Facebook’s board?

Some would immediately think of Michael Powell, president of the National Cable & Telecommunications Association. He has been the flag-bearer for the internet and television industry for the past several years. Before that, he was a member of the FCC, and chaired it for four years. He has a wealth of knowledge on navigating the regulatory landscape and would add a ton of value to Facebook in this vein.

The problem is that Mr. Powell serving on Facebook’s board while heading up the NCTA would be a conflict of interest, and I’m pretty sure he wouldn’t step down from his super powerful position just to be able to join Facebook’s board. Further, Mr. Powell doesn’t have the experience leading diversity initiatives at the scale with which Facebook needs experience. So, Mr. Powell’s not a fit.

There are two things this director needs experience with to move the needle forward at Facebook:

  1. The director needs to understand the media landscape and the regulatory system around it. Increasingly Facebook is being looked at as a media company rather than a social network. Because of that and the outcomes of the Russia-Facebook issue, Facebook could find itself facing increasing regulation to align the company with the rest of the media industry, so they will need someone who knows how to navigate that.
  2. Facebook needs someone with experience pushing diversity at a large organization and who can guide Facebook’s management as it continues diversifying its workforce. Facebook’s annual reports on its diversity numbers show that the company has quite a ways to go and having someone in the boardroom who knows how to get that done is key.

Payne Brown would be a strong fit to join Facebook’s board. He’s currently a managing director at Highbridge Capital Partners, which is a minority partner in Diddy’s RevoltTV. Mr. Brown was a vice president at Comcast where he led strategic initiatives, while overseeing program content, managing relationships with industry counterparts and governments, and standing up the company’s diversity council and leading the development of the company’s diversity philosophy.

While there is government experience on the board in Erskine Bowles, having someone like Mr. Brown who has been successful on the lobbying side of the table in dealing with Congress would be helpful as Facebook’s dealings with Congress on Russia’s election meddling and whether it needs to be regulated like a media company increase.

A counter to Mr. Brown joining the board could be that he’s not a household name and could perplex investors who are trying to put a value to the impact he could have on Facebook’s business. Well, Payne has worked on Wall Street for several years now and I’m sure analysts would easily be able to ask around and get a better sense of the impact he’s had on the media industry. If they don’t get answers on Wall Street, they could just ask Diddy!

A bit of an aside to all this is that it’s fine that Facebook has made a commitment to adding an African-American individual to its board, and that Congressmen like G.K. Butterfield are focused on getting more African-Americans into executive roles in Silicon Valley. But, we have a lot of work to do to build an ecosystem within the black community that could support my daughter building a $100 billion business.

I believe there is enough wealth within the black community today to do this along the startup venture path – pre-seed, seed, series, A, B, C, D, initial public offering, and beyond. That’s what makes the work the folks at Black Girls Code, Precursor Ventures, Cross Culture Ventures, Backstage Capital, Black Wall Street and more exciting because they are more likely to find these folks and get them started along the path.

It would be nice to have a concerted effort from black policymakers, high net worth black people, and black players in the tech space to build an ecosystem around black technology entrepreneurs and provide them with the resources they need to build the future and billion dollar businesses along with it.

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Additional Reading for the Weekend:

  1.  Shonda Rhimes Just Became the Third Black Woman in the TV Hall of Fame
  2. Charles Hudson of Precursor Ventures Filed to Raise $25M for the pre-seed venture firm’s second fund
  3. African startup founders can finally start looking for big-ticket funding nearer home
  4. Lightspeed Welcomes Tara Nicholle-Nelson as Entrepreneur-in-Residence
  5. Backstage Capital acquires The Door to continue funding underrepresented founders
  6. Issa Rae Built a Hollywood Career on Her Own Terms. Next, She’ll Build an Empire

Social Capital Hedosophia is Going to Change the VC Game, But Will It Really?

Several weeks ago, Chamath Palihapitiya did an interview with Kara Swisher on Recode/Decode that really got my attention. He was talking about how the venture capital industry was overdue for a shakeup to meet the needs of technology startups. He talked about using data science to identify investment opportunities and scale companies, similar to what he did while he was at Facebook to provide in depth services to these startups.

Further, rather than there being a ton of pressure for these companies to go scale quickly, they would have an investor that would be with them for the long term from the beginning. This sounded really interesting, particularly when he posited that this new iteration of Social Capital was going to surface founders who would typically be overlooked because of the way in which they will be looking at data.

One question that comes to mind is how would they overlooked founders get on his radar. What’s his plan to get data across a wide enough geography in order to capture these overlooked startups?

Admittedly, during Chamath’s conversation with Kara, I was unsure of what this new iteration of Social Capital would look like. Well, I got my answer a few weeks ago when Social Capital partnered up with Hedosophia to list on the New York Stock Exchange, forming Social Capital Hedosophia.

What is Social Capital Hedosophia? This is a publicly traded holding company that is designed to take unicorns public without them having to go through the traditional process of going public – roadshows, lockup period, etc.

Initially, I thought that this new model Chamath was talking about could be a game changer for startups run by black people. Perhaps, this new iteration of Social Capital could do like Chamath said and reduce the exclusion of underrepresented groups from taking the next step in building technology companies. But, I’m not sure that Hedosophia has the people it takes to address the pipeline issue.

Beyond using data science, Chamath cannot cut out the human component of how he builds out this new company. He’s got to build a team that has a global worldview that can see into the worldview of folks in Jamaica Queens, Kansas, Lagos, and Bogota. Layer the machine learning on top of that and you’re cooking with grease.

If Social Capital Hedosophia (I’m going to get carpal tunnel if they don’t come up with shorthand for this.) doesn’t do this important work, the company will just do what the rest of Silicon Valley has done, just more elegantly. Removing bias doesn’t matter if you’re pulling from the same pool of folks.

No. 52 – 3AMReads: So. Tired. Need. Sleep.

Ecobank Research: Barclays brand’s exit from Africa could trigger loyalty separation

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TechCabal’s African Tech Roundup: Africa-Focused Insights From IoT World Forum 2017

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IMF: Tayo Oviosu: Technology Draws More Nigerians Into Banking Fold

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No. 51 – 3AMReads: Mozambique and Ivory Persist and Attract Capital | African Development Bank Makes Case for Investing in Africa

Bloomberg: Traders Snap Up Assets of Nation Where Default Is New Normal

I’m not really sure what to make of this article. I wrote a several weeks ago about how I was nervous about hedge funds investing in countries like Mozambique. While the independent audit of the country’s finances seems to have given investors increased confidence in the country, are we certain Mozambique is rounding the corner in being able to make it’s debt payments? I’d hate to see this turn into a situation where investors just have more assets to play with in order to get their money.

Reuters: Ivory Coast says long dated Eurobond raised $1.25 bln, 625 mln euros

Despite the tensions with its military, Ivory Coast continues to attract capital. Good stuff.

African Development Bank: Adesina – Its time to reboot and boost US-Africa Commerce and Investments

The Corporate Council on Africa is hosting is US-Africa Business Summit this week. Is Commerce Secretary Wilbur Ross speaking at the Summit a signal that we’re a few inches closer to seeing the US start to roll out bits of an Africa policy?

 

No. 50 – 3AMReads: Moody’s Downgrades Eskom | DRC Asks for Joint Bid | Ghana President Wants More Parliament

Moody’s downgrades South Africa’s power utility Eskom

South Africa continues to face challenges as bad news continues to emerge from week to week. On Monday, Eskom’s chairman resigned. On Tuesday, Moody’s downgrades the power utility’s credit rating.

The question in my mind is what is the path forward for South Africa. President Zuma, who has played a central role much of these recent issues, will be stepping down as leader of the ANC next year, hopefully. He is then to step down as President in 2019. Who will fill that void?

The ANC is still pretty firmly in Zuma’s control, evinced by the ANC voting not to remove him from the presidency a few weeks ago. Who within the ANC could step up? The party’s Youth League has put its weight behind Nkosazana Dlamini-Zuma, but she is also backed by President Zuma. Who outside the ANC could step up? One of the most high profile political leaders in the country, Helen Zille, just apologized for a problematic tweet about colonialism being good for Africa. I think it’s pretty safe to bet she won’t be getting a ton of votes.

South Africa needs leadership to right the ship over the next several years and it’s not apparent that folks are in position to take on that mantle. Hopefully, someone emerges over these next couple years.

Congo tells consortia to form joint bid for Inga 3 hydro project

The Inga 3 dam has been under development for what seems like forever, something like 14 or 15 years. The Democratic Republic of Congo just asked two massive companies from China and Spain to work together on a joint bid, and it seems like a pretty strange request. Let’s see what more information comes out about this.

Ghana Leader Favors Constitutional Change to Boost Finances

President Nana Akufo-Addo wants parliament to have more oversight of the country’s public finances, which would require constitutional changes. Ghana already has a central audit agency structure. I think a nice addition would be to create an agency similar to the Government Accountability Office, an independent agency that works for Congress and investigates how the government spends public dollars. GAO has already done with staff at Ghana Internal Audit Agency, and I’m sure would be more than happy to help establish a similar organization that works for Ghana’s parliamentary structure.

No. 49 – 3AMReads: Kenya Finds Trump Connect | Trump’s OPIC Pick… | Nigerian Oil Company Wins Oil Block

Politico: SPG Signs Kenya

Trump-connected Stanton Park Group signed a $1.2M contract to represent the country’s interests in the US. I look forward to seeing what they accomplish.

White House: Seventeen Nominations Sent to the Senate Today

President Trump has nominated Texas real estate tycoon Ray Washburne to be President of the Overseas Private Investment Corporation. After digging into his background I’m curious to find out which emerging markets he has traveled to, if at all.

It is encouraging to know that he is influential in President Trump’s circle, considering that he was part of President Trump’s transition team. The signs have been pointing to OPIC shutting down, but perhaps he can be influential in making a case for the agency to remain operational.

Fortunately, the nominee for Executive Vice President of the Corporation is David Bohigian who has significant experience negotiating trade agreements for the US. While looking into him, I found this interesting Cordell Hull quote he shared during a 2005 testimony he gave while being vetted for a position at the Department of Commerce:

I have never faltered, and I will never falter, in my belief that enduring peace and the welfare of nations are indissolubly connected with friendships, fairness, equality and the maximum practicable degree of freedom in international trade.

Todd Moss and Jared Kalow at the Center for Global Development provide some helpful recommendations to the two nominees here.

Forbes: Nigerian Energy Group Taleveras And ExxonMobil Win Oil Blocks In Equatorial Guinea

This article caught my eye because I couldn’t recall hearing of many African-owned oil company winning oil blocks, so I checked with a friend who confirmed that only a few firms have won oil blocks like this. I look forward to seeing more of this. It would definitely help to have African-owned oil companies exploring these blocks to have more data to draw from for the R&D labs they will be investing. (Remember my saying I’m going to keep bringing up these R&D labs?)

No. 48 – 3AMReads: $1B Cobalt project | South Africa’s Radical Economic Transformation | What is US-Africa Policy?

Bloomberg: Owner of $1 Billion Cobalt Project Says Rally Is Far From Over

Eurasian Resources Group has a pretty massive cobalt mining project in the works in the Democratic Republic of Congo. The company stands to realize a nice return on investment at the rate cobalt prices are skyrocketing. They jumped 71% last year and are expected to increase by 60% this year. Rising demand for electric vehicles and limited cobalt supply is driving these prices.

What concerns me about this project is the supply chain.  Cobalt mining has come under scrutiny due to the health hazards associated with extracting the mineral. Even more concerning is the reality that evidence has been found of children participating in cobalt mining in DRC. Take a look through ERG’s website, and you’ll see it is fairly light on sustainable development and occupational safety.

Chinese cobalt miners have caught the spotlight in terms of not managing their cobalt sourcing well. ERG should get the same level of attention to be sure it keeps things on the up and up.

Fin24: Recession shock knocks volatile rand

Radical economic transformation. Debate over what this means for South Africa reached fever pitch after President Zuma sacked Pravin Gordhan, probably the most respected high-ranking government official at the time. The midnight firing led to two credit agencies giving South Africa junk bond status. Yesterday, the country went into recession. Radical economic transformation. SMH.

Video: Senator Chris Coons Speaks at Council on Foreign Relations

Senator Chris Coons spoke at the Council on Foreign Relations yesterday, discussing US policy in Africa. Best line from the conversation, “On some level, I don’t want it to be a higher priority for the Trump administration.” Agreed.

https://www.facebook.com/plugins/video.php?href=https%3A%2F%2Fwww.facebook.com%2Fsenatorchriscoons%2Fvideos%2F1616437811702819%2F&show_text=0&width=560