ETHIOPIA – Ignite Investment Inc. has developed an equity crowdfunding platform that links Ethiopian startups with investors from the diaspora who are interested in investing in Ethiopian companies.
By giving equity in their business to a large number of individual investors contributing relatively modest amounts of money, entrepreneurs can obtain financing through a process known as equity crowdfunding.
Ignite is an initiative with the goal of resolving the difficulty that Ethiopian small businesses and startups have in gaining access to funding.
This difficulty is caused by the collateral requirements of banks, the restrictive regulations that are in place, the absence of capital markets, and the nature of the investment that is required by small businesses, which is typically less than what is currently being offered by the private equity market. Ignite hopes to solve this difficulty
Ignite delivers a new technique to mobilise international and local money for firms that are viable, scalable, and sustainable by means of its equity crowdfunding platform. Ignite plans to expand across the rest of Africa after establishing its presence in Ethiopia as its first emphasis.
Ignite gives business owners who are wanting to raise capital the ability to establish a profile for their company that has a pitch deck, a business description or teaser, a business plan that includes financials and other documents, and more.
After conducting the necessary research, Ignite will post the profile, market the company to its network of investors, and facilitate the entirety of the investment process as well as the conclusion of the agreement.
Ignite is able to streamline the process by consolidating several crowd investors into a single investor. Ignite will consolidate all of the investors in a fundraising round into a single stakeholder in the firm, even if there are thousands of investors in total.
Ignite’s fee structure is built on a successful fee-based approach, which is discussed and agreed upon with the owners of the businesses being crowdfunded from the very first step of the process.
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