Uncap, a fintech that uses a digital solution to make funding accessible to every good entrepreneur across Sub-Saharan Africa has launched an innovative financing and growth platform to give early-stage entrepreneurs access to capital.
The funding is open to registered limited companies in Kenya, Uganda, Rwanda, and Nigeria. Businesses seeking funding between $10,000 and $ 50,000 should be operational for more than 12 months and up to 4 years.
The startups must have a product or service in the market with a track record of revenues for at least a year with a set customer base.
Qualified businesses should have a business model that can scale over time, i.e., grow nationally or regionally.
Early-stage founders are usually seen as too risky by financial institutions and having funding needs that cannot be met by either venture capitalists or the big microfinance banks.
Uncap gives capital of between $ 10,000-$ 50,000
Uncap uses a remote and data-driven investment model that caters for existing startups in need of capital of between $10,000- $50,000. The fintech invests through an equity-based revenue-sharing model designed to address the needs of early-stage businesses.
It purchases a share in an entrepreneur’s outfit, which is then repurchased by the entrepreneur, at an agreed price, based on revenues generated.
In the post-investment stage, a startup owner can access a dashboard that provides crucial financial data and info and training manuals to support the founders on the journey.
According to Franziska Reh, Uncap CEO, the fintech gives founders room to grow the business at their own pace. At the same time, it only holds a minority stake with little or no involvement in daily operations.
Applicants have two months to seek consideration with Uncap insisting that founders have the most significant impact on the business.
The application process mainly focuses on quantifiably assessing the founder’s entrepreneurial potential and knowledge of their business.
Since launching in 2019, Uncap has invested in 27 companies to test and refine its approach. This funding round aims to test Uncap’s ability to scale its investments to more than 100 companies in one batch.
The company aims high to revolutionize access to funding by reaching 50,000 entrepreneurs by 2030, equaling US$ 1 billion in investments deployed and 1 million jobs created.
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