Escaping the middle income trap is one of the greatest challenges facing emerging markets, and one that the Turkish emerging market has identified as a common objective. Liquidity and freeing up under-utilised sectors of the economy go hand in hand to play an important part in this. The Diamond Fund was established as a vehicle for international investment into Turkish startups with women entrepreneurs at the helm, with an investment plan consisting of Rhembos that was developed on the ground in Istanbul with an aim to bridge the expectations and needs of international investors and local investees in mind. Successful applicants will be receive a rounded training that prepares them to take full advantage of the opportunities this unique investment plan offers them.
Flagship Product: Rhembo
Current Status: Dormant
The Rhembo as an investment plan for qualifying emerging market startups was structured according to real life experience and challenges encountered by the Polymath Creations Founder attempting to create a competitive platform for startups, over a 10 year timeframe based in Istanbul between 2005 and 2010. When Polymath Creations is established as an FCA accredited LLP that can accept investor funds into the Diamond Fund for investment into Rhembos for qualifying emerging market startups, starting with women entrepreneurs in Istanbul, the developed economy end of the bridge will be ready and the bridge can be opened, probably some time in 2022.
First Development Phase:
Context is everything and the Rhembo was created in a high inflation high interest rate environment where the kind of long term investment planning that small startups require was almost impossible to find. Any borrowing needed to get started would quickly become another burden in a long list that could drag a business with trading potential down through no fault of its own. Unpredictable conditions with a crisis always just around the next quarter makes for short term thinking and fatalism where entrepreneurs and employees direct energy and resource that might get this venture over the line, into their own coffers so they might be ready for the next since they know best, and so on ad infinitum. Except in established corporations, it is is hard to find or develop collective aims and responsibility.
Those are the conditions in which it becomes easy to tell an outside investor whatever they want to hear, safe in the knowledge that some crisis beyond everyone’s control will rescue the investee from any obligation to pay or responsibility. Investment systems that make sense in economies where conditions are more stable and where efforts in a certain direction can to some extent be taken for granted don’t always pass muster where attitudes are different. Bad experiences add to a bad reputation rather than solutions, and serve to make the original problem worse, in an endless downward spiral. Skilled local entrepreneurs and intrepid international investors have completely different expectations which both sides prefer to ignore when they come together, and nothing that begins to hold either side to a term and course when events expose those differences to stress and strain. The Rhembo was designed to help both sides overcome those challenges, and stay the course. In some respects the Rhembo acts like a prenup, which introduces its own expectations that everyone agrees upon, and helps diffuse issues that might cause a messy divorce by addressing them.
Needs must, necessity is the mother of invention, and no one can be in two places doing two jobs at once. In this brand backstory, 90% of time and energy over 10 years from 2005 to 2010 went into doing the hard yards in an emerging market, leaving only 10% to find the money to secure the leveraged gains made on the ground, initially in real estate. Under normal circumstances, that 10% effort, part of which was directed towards building the innovative Rhembo investment structure marketed as the Diamond Fund, might have been enough to secure the necessary informal international funding for a prime asset going cheap to secure an ambitious brand startup programme, but market forces kind of took a back seat to quantitative easing, and ideology, so risk capital was able to find a safer bet backed by developed economy governments closer to home.
With the locations and %’s reversed, it has been possible to take stock of events, take the positives, and look at how best to connect the excellent small business support schemes like SEIS and EIS in the UK to Rhembo’s with women entrepreneurs at the helm in complex emerging markets, starting with Turkey where the Rhembo was created. While Polymath Creations had to earn its startup corn in the UK the hard way between 2015 and 2020, which involved developing its own bread and butter income streams from Polymath brands, before long it should have evolved into an LLP structure that satisfies legal requirements for capital investment by independent investors into local and international brands, including the Diamond Fund for emerging markets.
The Diamond Fund would target those international investors and local entrepreneurs who understand that when honest endeavour meet honest returns with a shared plan over a longer timeframe, miracles can happen. A miracle would be stability and independence for a high % of Rhembo startups, with the possibility that one or two might then get fast tracked by the big investment players using the well grooved share equity market model into international brands without losing their brand attitude. Sometimes all it takes is a new approach to alter unrealistic expectations that create bad habits and negative outcomes, which begin to slow and then even turn the tide of human and capital migration. No one likes to estimate the cost of pay for play and dodgy aid deals, or money printing and entitlement schemes, that turned the capital and migration flow from poor to rich countries into a flood that stands to wipe out all gains of the technological revolution sooner or later if nothing is done. It’s no good criticising the architects and outcomes of the industrial revolution yesterday to distract from the failures of the technological revolution today. You will be judged by your outcomes, not your intentions!