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New crowdfunding site sizes business hopefuls up

Africa , 07 Dec 2015

New crowdfunding site sizes business hopefuls up

A new crowdfunding site focussed on funding high impact startups with the potential to generate employment, improve infrastructure and address several socio-economic challenges on the continent has been launched.

Called Malaik, the site aims to offer opportunities for small and medium enterprises in Africa to access seed funding from US$200,000 to US$2,000,000.

Malaik joins several recently launched platforms, including JumpStart Africa, Funda Solva and Akkoba, that showcase African start-ups and help them secure local and international funding.

Neku Atawodi, founder of Malaik says young companies all over Africa face a scarcity of funds to fuel their growth.

"Apart from banks and occasional angel investors, there is often nowhere to turn. Malaik is turning this crisis into an opportunity for startups and investors alike by offering stakes in young African companies to the crowd."

Malaik is marketed as the first crowdfunding platform to measure the impact of startups and their funding for investors, and also track relevant financial reports. "Our unique impact tracker means that investors can track their investments' impact on the platform," said Atawodi.

The site uses a unique system to firstly identify suitable potential lead investors prior to listing any companies. Investors then have the opportunity to stipulate their valuation and conduct a background check before making a formal investment.

Once that is done, the company will be listed on the platform offering shares to the public. Companies then negotiate the amount they would like to raise and how much shares they would want to give away.

Issam Chleuh, Malaik Impact Advisor and CEO Africa Impact Group, commented on the launch of the new crowdfunding platform. "The needs of our age are building a more sustainable world, fighting global poverty, global health issues and climate change, among others. The innovation in finance that responds to this need in Africa is Malaik: democratising impact investing into impact-driven African startups."

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