This week, impact-focused equity crowdfunding platform, Malaik, launched in Africa. The new website gives investors access to the continent’s opportunities, and mediates its risks with a four step due diligence process. This combination is a fresh application of technology that can unlock massive potential in the world’s most promising markets.
According to Ventures Africa, Malaik’s key goal is offer the global community clear and well-documented opportunities for high impact investing in African businesses a chance to participate in Africa’s growth story.
While sharing details about the new platform, founder and CEO, Uneku Atawodi, stated:
“Malaik was founded because access to finance is a problem for entrepreneurs in Africa. So many inspiring African entrepreneurs that have amazing ideas, that deserve to be scaled don’t have funds because it’s risky for banks to give out loans to start-up businesses. Malaik helps to close that gap by selling equity in start-up businesses to interested investors.”
Explaining how the crowdfunding platform works, Atakwodi noted:
“Malaik is four months old from idea conception until date. We were proud to preview for the first time at the African Leadership Network to the crowd fare. So here is how Malaik works: firstly you log on to our website and register as either an investor or an entrepreneur. An entrepreneur can apply to raise funds for their company through our platform while an investor can apply to be an investor. Once the investor is approved he would be able to see the batch of companies that have gone through our due diligence report and then put the amount he wishes invest. Our investment calculator would automatically calculate how many shares in the company that the investor would get for his investment. For example if the company is raising $100 000, and you invest up to 20 percent equity, you invest $10,000, you get 2 percent equity in that company.”
Also revealing how Malaik stands out from other platforms, Uneku said:
“First Malaik is an equity crowd-funding portal, though it’s not just for not- for-profit businesses. We are actually helping businesses that are highly comfortable with the potential to provide a lot of impact and raise funding to scale. The difference is that we only put up companies that have a big attraction and are selling equity finance. As opposed to other crowd funding platforms, Malaik finds you a lead investor or you come with your own investor and if your company is open to the crowd on the platform we would have identified the lead investor. The lead investor takes a minimum of 25 percent of funds that the company is trying to raise and then the crowd can invest in the same deal terms. So, we allow the crowd to get fair value for their money because the lead investor would have invested their own money in and negotiated deal terms.”
In regards to how much can invests give to the platform’s startups, Atakwodi added:
“The minimum investment for a company is $1000 except where specified. If the company comes up and says they want to sell their shares at a higher minimum, then that would be written on the company’s page. On Malaik you are allowed to choose what company you want to invest in, and you are advised to spread your investment through and not put all your money in one company but spread your risk in investing in either two or three companies.”
Check out the entire interview below.
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