Here at AlliedCrowds, we’re committed to helping organizations and entrepreneurs in emerging markets to find sources of capital for their ventures. To date, most of this has been concentrated on crowdfunding — and we see a lot of potential for growth there in the coming months and years. For entrepreneurs, however, crowdfunding may not always be the best funding option. To help a broader range of organizations, businesses, and entrepreneurs, we’re excited to announce the launch of the AlliedCrowds Capital Finder!
What is the Capital Finder
The Capital Finder is an innovative tool that’s targeted specifically at entrepreneurs and MSMEs who need capital to take their businesses to the next level.
The Capital Finder lists all of the major alternative sources of capital available to them in their country, including:
- crowdfunding platforms
- venture capital firms
- impact investors
- angel investment networks
- development banks
- national / international organizations focused on business funding
The sources of funding are categorized by startup industry sector (agriculture, IT, healthcare, etc.) and capital type (equity, loans, grants / donations), and lists additional information about the firms / organizations offering the capital, like year founded and (in the future) typical deal size.
AlliedCrowds doesn’t charge any fees for the service, and it only serves to promote offline connections between startups and funders — any transaction that takes place will happen off the platform. We think this is beneficial to the entrepreneurs, as it does not slow them down by asking them to register, fill out questionnaires, etc. — the businesses can use our directory to identify potential investors and contact them on their terms.
The Capital Finder is not a crowdfunding platform by any means, but it does make use of similar mechanics to achieve its goals. By making transparent the sources of funding for entrepreneurs, it aims to do away with information asymmetries. This can reduce the inefficiencies in the startup funding market, leading to more optimal asset allocation within an economy and promoting long-term economic and job growth.
In other words, the Capital Finder hopes to make it easier, cheaper, and quicker for individuals to fund their businesses, which will promote entrepreneurship and create jobs — key for long-term growth in emerging markets. In addition to the directory also features the Entrepreneur Hub, which has tips for startup founders on how to grow their companies and make the most of their money.
Looking for similar tools ourselves, we were surprised to find that very little reliable information exists for entrepreneurs in developing nations regarding the sources of capital available to grow their businesses. So, we decided to build that resource ourselves.
We like the Capital Finder because it is actionable and can help entrepreneurs on the ground, right now. Are you a Kenyan IT firm looking to get VC or impact investor funding for your venture? Our Capital Finder narrows down the potential sources of capital for your firm down to 44 possible investors, and gives you their contact information — you now have a number of potential investors who operate in your country and sector to begin your search for capital.
The directory is currently in beta, and we are in the process of adding more sources of capital while simultaneously making the information more targeted, so entrepreneurs get the best results possible. Even today, however, the Capital Finder is a huge improvement on publicly available information.
In the next few weeks, we’ll be publishing more information about the Capital Finder, insights that we can already glean from the tool, and where we see it going. Know any entrepreneurs in emerging markets (ex-China) who are looking for funding for their projects or businesses? Send them the link to the Capital Finder — we’d love to hear their feedback.
If you’d like to learn more about how your company or organization can make use of the tool, or to offer any suggestions for improvements, please get in touch by emailing email@example.com.