European crowdfunding firm targets Kenyan start-ups

Startup up companies and young entrepreneurs will have the chance to access funding following the establishment of a local resource mobilization office.

Crowdfunding International has opened a representative office in Nairobi in an effort of helping entrepreneurs attract funding from global donors.

Crowdfunding International Chief Executive Officer Pascal Nieling said the concept involves raising smaller amounts of money from multiple backers spread across the world.

“Most people are turning to crowdfunding since it’s the easiest way of reaching more people within the shortest period possible. Since contributors put their energy and funds together, they won’t feel overburdened by being asked to donate a lot,” Mr Nieling said.

The CEO also noted that crowdfunding has been a phenomenal driving force of creative development in the US and Europe, and he believes that it can become an equally powerful force in Africa.

“Before, a business owner was subject to the caprices of individual angel investors or bank loan officers. Now it is possible to pitch a business plan to the masses,” he stressed.

The firm’s International Project Manager Laurent Vergnaud on his part said that businesses will pay an upfront fee of Sh25,000 opening up an opportunity to get funds to scale up businesses.

Mr Vergnaud further noted that the concept allows multiple donors and investors alike to commit small amounts of money.

“A successful crowdfunding round not only provides your business with needed cash, but creates a base of customers who feel as though they have a stake in the business’ success,” he said.

Crowd funding provides a bridge to credit access, a hurdle that hinders early-stage startups in Africa.

Crowdfunding International was started in December last year, and it’s currently operational in 155 countries.

More than 34,000 diverse projects have so far been initiated under the concept.