MYC4

MYC4 is an online crowdfunding marketplace that was launched in October 2007 based on the vision of creating long-term and sustainable economic growth by igniting business development and entrepreneurship. MYC4 aims to remove the financial barrier that significantly contributes to the underdevelopment of businesses in Africa by enabling people from all over the world to connect directly with African entrepreneurs who lack capital to develop their businesses.

MYC4 has built an online marketplace for loans to unbankable entrepreneurs under free market forces. MYC4 is providing businesses in Africa with direct access to capital on fair and transparent terms and it is providing investors with access to adjusted risk returns. MYC4 presents an opportunity to make a difference as well as the potential for investors to make a profit.

The marketplace is built around a network of African Providers (microfinance institutions) that screen for loans. When an entrepreneur passes due diligence, the provider uploads a profile to the marketplace and handles the financial transactions, repayments and reporting when a loan is funded. A very important aspect of MYC4’s vision is to build online creditworthiness so that in the future borrowers have increased opportunities to access capital. Transparency and online information are key aspects to achieve this. The average loan on MYC4 is for €1,700 and funded by 50 online Investors and repaid over 12 months. The smallest loan amount is €100 for 4 months and the highest is €50,000 for 36 months. The investment process is based on a Dutch auction principle: the more investors interested in investing in a specific African business, the more favourable the interest rate is for this entrepreneur. Loan products are in annual percentage rate and based on declining balance (not flat fee). To date, 19,500 investors from117 countries have loaned €18,275,111 ($25 million) to 11,900 small businesses in 7 African countries.