TANZANIA – Dar es Salaam based Sustainable Solutions Consultant Company Limited (SSC Capital) has launched a crowdfunding to help entrepreneurs seeking to raise capital to invest in growing their businesses.
SSC capital CEO, Salum Awadh said that the online platform dubbed Wengi Equity Crowdfunding will allow entrepreneurs raise minimum capital of US$21,500 (TSh50 million) in only six months period to invest in existing businesses or community problem solving projects.
Awadh said the initiative which is dedicated to help business start-ups, entrepreneurs and small sized companies raise capital, also allows interested investors to inject a minimum of US$2,150 (TSh500,000) to support businesses.
“The purpose of allowing US$2,150 (TSh500,000) as minimum is to get serious investors (personal lenders). One may need US$21,500 (TSh50 million) for instance to run a particular business that will benefit the general public but does not meet loan requirements, the platform enables them to get the money,” he said.
He explained that an escrow account that investors will be opened to deposit the willing investors’ money.
“We are working with one of the five big banks in the country and welcome graduates, entrepreneurs and start-ups to submit their business or project ideas to raise funds,” the SSC Capital chief noted.
The investor is guaranteed to get return for investment made through SSC Capital which will invite venture capital investors to buy the projects on offer in a form of shares that they will also sell to other investors hence generating profits.
According to him, those who are interested in raising money should first seek intellectual property rights to safeguard their ideas. Businesses that are prioritized are those owned by more than three people and registered by authorities.
Qualified projects will be subjected to due diligence for the purpose of avoiding money laundering. Clean projects will be allowed to use the platform to raise money for a period of six months but can be extended under conditions.
SSC Capital will screen and analyze the submitted project ideas before approving them so as to enable the investor make right decisions. Projects that are scalable and have potential growth have a great chance of being listed.
“Money will be disbursed in instalments to a beneficiary after every quarter with reporting on how the money is being used,” he added.
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