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How MYC4 is changing the funding landscape

Written by entrepreneurcountry Monday, 12 May 2014.

African economic growth is expected to rise to 4.7% this year, but there are concerns that the US Federal Reserve's exit from quantitative easing will stem the capital inflow required to sustain this level of growth. Innovative startup MYC4, co-founded by Mads Kjær (one of Denmark's most successful entrepreneurs), is emphatically addressing these concerns.

MYC4-newMYC4 exists somewhere between a development organisation and a microfinance lender. On the business side, the company can be viewed as building on the success of peer-to-peer lending models in the UK and US by giving users across the world the ability to support African growth.

Partners across Africa are contacted by local businesses looking for access to financing. Their economic prospects are evaluated, and those that pass are listed on an online auction, along with business details, the loan amount, rates currently offered and repayment periods. Users can then bid to lend an amount (from as little as €5), and the lowest rates offered will collectively form the loan amount.
As well as offering regular returns and, at present, a default rate of less than 1%, MYC4 offers a transparent alternative to charitable donations. Users can see reports on the local businesses they support, the jobs they create and the growth they provide to developing nations. Crowdfunding has never been so appealing.

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