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Crowdfunding in Kenya: A Case Study

This case study examines crowdfunding in Kenya. Crowdfunding involves raising capital from a large pool of individuals online through social media and crowdfunding platforms. It fits within the seed/startup stage of business development when access to capital is scarce. Crowdfunding is unique in that anyone with internet access can participate, and it comes in various forms like reward-based, equity-based, donation-based and debt-based crowdfunding. It offers entrepreneurs an opportunity to pre-sell products or services to launch businesses without debt or giving up equity. Success will depend on having a well-defined crowdfunding system, a solid business plan, and a motivated entrepreneur.

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Ahmed El Khateeb
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261 views13 pages

Crowdfunding in Kenya: A Case Study

This case study examines crowdfunding in Kenya. Crowdfunding involves raising capital from a large pool of individuals online through social media and crowdfunding platforms. It fits within the seed/startup stage of business development when access to capital is scarce. Crowdfunding is unique in that anyone with internet access can participate, and it comes in various forms like reward-based, equity-based, donation-based and debt-based crowdfunding. It offers entrepreneurs an opportunity to pre-sell products or services to launch businesses without debt or giving up equity. Success will depend on having a well-defined crowdfunding system, a solid business plan, and a motivated entrepreneur.

Uploaded by

Ahmed El Khateeb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Case study: Crowdfunding KENYA

Aidana Koshenova
Sarah Nesrala
Melvin Carrasquillo
Felman Antonio Ruiz Rodriguez
Crowdfunding is a method of
raising capital through the
collective effort of friends,
family, customers, and
individual investors. This
approach taps into the collective
efforts of a large pool of
individuals—primarily online via
social media and crowdfunding
What is it? platforms—and leverages their
networks for greater reach and
exposure.
Question 1:

Where does
crowdfunding fit in
the capital lifecycle of
business
development?
Crowdfunding fits right into seed/
startup stage of the capital life cycle,
when a firm has no operating activities
and access to capital is scarce.

Crowdfunding has filled this gap in


many industrial country markets and
with its distinct offerings, help tackle
the challenge.
Question 2:
Is
crowdfunding
really all that
unique?
In the sense of differentiation crowdfunding does stand
out. Since there is no direct niche and it is different from the
common funding. Anyone with internet access is able to
participate.

There are 6 different types:


➜ Reward Based
➜ Equity
➜ Software value token
➜ Debt based
➜ Litigation
➜ Donation based

Reward based and Equity are the two primary

Entrepreneurs presell a product or service to launch a business concept without incurring debt
or sacrificing equity/share.

The backer receives shares of a company, usually in its early stages, in exchange for the
money pledged
Question 3:
Crowdfunding?
What does it offer
that traditional
funding channels
and institutions do
not?
Crowfunding Vs Traditional Funding

Main Strength: The Ability of a potential investment to


reach an extended crowdfunding ecosystem.
Crowdfunding Vs Traditional Funding
Crowdfunding Vs Traditional Funding
Question 4:

What is likely to
differentiate successes
from failures in
emerging market
crowdfunding
programs?
The success of a crowdfunding program will
depend on three factors:
1. Well-defined and capable crowdsourcing
system
➜ Desired attention and funds of a linked
crowd that can defined the future of a
new business venture
2. Solid business plan and competitive analysis
➜ Profitability, financial forecasts, generate
sales and costs
3. Motivated, capable, and committed
entrepreneur
Thank you for your attention!

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