Uganda like most developing nations in Africa has a big youthful population, who are energetic and eager to work. However, employment opportunities are hard to come by, the next alternative route for making a living would be to venture into entrepreneurship, but lack of capital remains the biggest impediment. And that is exactly what GoBigHub want to solve, through crowdfunding.
GoBigHub makes it possible for entrepreneurs to get financing without collateral though based on a profit share arrangement. The funders who power the crowdfunding platform are investors looking for above-market returns that average 5% per month.
Businesses that secure funding are those that have secured contracts but lack the required fund to fulfill their obligations. Such businesses would register on the site (also accessible via a mobile app) and share details of their contract.
Once the legitimacy of the contract has been established, it is then availed to the public on the GoBigHub platform where investors can then review and should they decide to invest, they will get a flat rate return on their investment.
GoBigHub task is to ensure that the contract is well executed through supervision and making all the necessary payments to the suppliers. It is reported that up to date, GoBigHub has overseen transaction between investors and businesses looking for funding to the tune of $240,000. The platform is now looking to incorporate blockchain technology that will help the investor track how their money is being utilized in the projects they chose to fund.
“Most investors want to see exactly what their money does, and until we came across blockchain we did not know how to do this. We are now integrating blockchain, and creating a marketplace where our token, KontrakKoin can be purchased by investors, and used to finance contracts, as well as pay suppliers on the platform,” said Ojijo Pascal, the founder of GoBigHub.
GoBigHub provides a much-needed funding platform for businesses in Uganda. Especially for the SMEs with limited capital base – which is the bulk of registered businesses in Uganda – as they can now overcome some of the bottlenecks they face.
Traditional money lending institutions such as bank require the loanee (startup businesses) to have been in operation for at least three years in business. As such, startups could not turn to such institutions for funding.
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