Broken Windows
The Small Cracks We Ignore (Until They Crack the Foundation)
I've been thinking about broken windows lately. Not the literal kind - though you may have seen a fair share of broken car and building windows - but the metaphorical ones that I have seen that have shaped my decade in the African venture ecosystem.
The Broken Window Theory has been living rent-free in my head since I first heard it weeks ago. Introduced by social scientists James Q. Wilson and George Kelling in 1982, it has one simple premise - a broken window left unrepaired signals that no one cares, inviting more serious problems. One broken window becomes many. Order deteriorates. Systems fail.
In building my career engaging with the startup ecosystems across Africa, I've watched this theory play out over and over again. And this should force us to confront uncomfortable truths about how we build things or let things be!
The $100M Lesson
When I managed Tony Elumelu Foundation's $100M Pan-African entrepreneurship initiative, I encountered a continent-wide "broken windows" challenge. Entrepreneurs weren't failing solely due to lack of funding—they were struggling because fundamental ecosystem support structures were missing:
Monitoring systems: Without systematic evaluation frameworks, entrepreneurs drifted from core missions. Small metric tracking gaps became existential direction problems.
Mentor disconnection: Early-stage founders without mentors made the same preventable mistakes repeatedly. Knowledge gaps compounded into business-ending decisions.
Capital timing: Delays in funding created outsized negative impacts, killing or inhibiting business potential.
First Venture into VC
My career then led me to venture capital, giving me a new perspective on how this theory applies to portfolio companies:
Governance structures: Companies with clear governance frameworks from day one avoided the chaos that consumed their peers. Documentation oversights often signaled deeper operational disorder.
Financial markers: Minor financial reporting inconsistencies frequently predicted major cash management issues months later.
Communication hygiene: Teams with open, consistent communication avoided costly issues that plagued less disciplined companies.
Present Day: High-Touch Strategy at Launch Africa
At Launch Africa Ventures, we're applying the broken window theory more deliberately in our investment strategy:
Early warning system: With our portfolio management team, we monitor small operational issues before they become existential threats.
Day-zero governance: We establish governance structures immediately, preventing the first window from breaking.
High-touch involvement: Regular, structured communication helps us spot hairline cracks before they fracture the foundation.
LP transparency: Proactive reporting gives our limited partners clear visibility into how we deploy and manage their commitments.
My Leadership Philosophy
The broken window theory has shaped my leadership philosophy in three fundamental ways:
Address small problems immediately. In venture capital, there are no "minor issues." Today's small misalignment becomes tomorrow's existential threat.
Build systems that prevent broken windows. Individual vigilance isn't scalable. You need robust systems to identify and address potential failure points. This is hard work!
Culture is preventative maintenance. A culture of excellence creates an environment where broken windows are spotted and fixed naturally.
Key Takeaways
For those building startup ecosystems:
Set clear standards early, before the first window breaks.
Implement robust monitoring. You can't fix what you don't measure, and small problems quickly become terminal.
Invest in founder development. Many broken windows stem from knowledge gaps that mentorship can address. Often, founders don't know what they don't know.
Address issues at first sight. When investors notice small red flags but don't engage, they permit broken windows to multiply.
Create ecosystem feedback loops. Connected ecosystems spot potential issues before they spread.
The most successful startups and funds share a common trait: they treat small problems with the seriousness they deserve. In the venture ecosystem, there's no such thing as a minor issue—only major problems caught early enough to fix.