Lagos - A new equity crowd funding portal has
been launched to enable entrepreneurs in Nigeria and the continent raise
The portal, Malaik, encourages high impact investing in
African businesses and offers opportunities for investors to participate in
Africa's growth story.
It follows the realisation small and medium enterprises
(SMEs) are the primary job creation engine in Africa, accounting for over 95
percent of firms and 60 percent-70 percent of employment. Yet, SME's on the
continent report access to finance as the biggest obstacle to growth.
“Young companies all over Africa face a scarcity of funds
to fuel their growth,” Neku Atawodi, Founder of Malaik, said in Lagos.
“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. Our unique impact tracker means that investors can track their
investments impact on the platform.”
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The platform uses a unique system of first identifying a
lead investor before putting a company on the platform.
The lead investor sets the terms and valuations of the
deal, and personally invests a minimum of 25 percent of the companies' asking
The lead investor negotiates a fair valuation and is required
to conduct their own due diligence before putting their money in. A lead
investor may be an individual investing alone, or a representative for an
investing group or institution.
The crowd receives the same class of share, and the same
price per share, as the lead investor, except indicated otherwise.
Companies listed on Malaik decide how much money they
want to raise in exchange for a certain percentage of equity, and each
investor's equity interest is proportionate to the size of their investment.
Malaik will focus on high-impact companies that provide
jobs and solve social and infrastructural issues in African nations while
The global portal will fund seed stage
businesses requiring funding between $200 000 to $2 million.
- CAJ News