It is a big step for Malagasy entrepreneurs, which has just been accomplished with the launch of a crowdfunding platform. “Since Monday, December 5, more than 200 projects have been submitted and 15 of them are considered viable,” explains Christian Rasoarahona, president of Kapital Plus-Plus.
From now on in Madagascar, anyone can acquire shares from as little as 10,000 ariarys, on the first “crowdfunding” platform of the “crowdequity” type (participatory financing), in exchange for shares or social shares.
Launched by Kapital Plus-Plus, in partnership with BNI Madagascar, this platform aims to allow a new mode of payment and financing on the island. “Crowdfunding is the new tool in vogue to support investments. It contributes to the financing of a company in return for a share in the capital” explains Christian Rasoarahona.
According to the latter, the guarantee required to the holder is the viability of his project, so the platform launched yesterday on the Internet connects project holders with investors, thus facilitating the collection of funds for financing.
A success in the United States
Inspired by the successes in the United States, crowdfunding, launched in 2007, has raised US$34 billion for economic projects. Of the $34 billion, $2.5 billion was paid out in the form of an equity investment to individuals, companies, or institutions that contributed to the financing of a company.
For more guarantees, Kapital Plus-Plus offers a system of support to project holders, with the support of notaries, legal experts, accountants, etc. In addition, the BNI Madagascar also ensures the security of funds, according to his Alexandre Mey, Director General.
“The first Malagasy bank is proud to support this innovative approach, carried out by the country’s entrepreneurs,” he announced at the signing ceremony. This is why the projects are assiduously followed by experts, but also by the promoters of “crowdfunding”.
“We carry out analyses on the viability and profitability of each project, based on a market analysis. A business plan is then drawn up. That’s why only 15 projects are published on the platform, out of the 200 submitted. Some projects still have imperfections and are subject to improvement work with their carriers. Others do not correspond at all to the market, and are rejected. But with the improvement work in progress, about fifty projects should be published on the platform before long. The fundraising for each of them takes between 60 and 180 days,” they explained.
For Kapital Plus-Plus, this system does not represent any risk for small or large, local or foreign investors. “Contributions are frozen in a secure bank account during the collection cycle. At maturity, the funds are transferred directly to the project’s issuing company. In case the funding does not close, the money is refunded to the contributors,” explained its president.
Source: Midi Madagascar