Uncap aims to Bridge the Funding Gap for African Entrepreneurs

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  • Uncap, a platform for early-stage investment for African entrepreneurs invites start-ups to apply for up to 50,000 EUR in early-stage financing
  • Applicants must be limited liability companies in Kenya, Rwanda, Uganda, or Nigeria, have at least 12 months of revenue traction, and have a scalable business plan
  • The application period begins on July 18 and ends on September 16

Uncap, an award-winning platform designed to provide access to early-stage investment for entrepreneurs in Africa is inviting start-up enterprises to apply for the possibility of receiving between 10,000 EUR and 50,000 EUR in early-stage funding.

To be eligible for funding, applicants must be incorporated as limited liability businesses in Kenya, Rwanda, Uganda,  or Nigeria, have at least 12 months of revenue traction, well-kept company records, and a scalable business concept.

Applicants are welcome from any industry, not just tech. Uncap adheres to a “do-no-harm” principle and does not invest in firms or persons who harm the environment or people.

The application process for Uncap is entirely remote and focuses on quantitatively evaluating the founder’s capacity to create and scale a successful business.

Uncap invests via redeemable equity-revenue-based financing (RBF), which is tailored to address the demands of early-stage enterprises. RBF is a kind of capital raising in which investors agree to give a firm capital in exchange for a proportion of the company’s ongoing total gross revenues. Uncap purchases shares that can be redeemed by the firm at a predetermined multiple using a proportion of their monthly revenue.

Developing African Entrepreneurs

Uncap is a sub-Saharan African venture capital firm that was established in 2019 to provide early-stage funding to any qualified entrepreneur in the sub-Saharan African region.

One of the barriers to equal opportunity in business expansion is the unequal distribution of early-stage financing, which is also significantly skewed concerning education level, gender, and geography. This is one of the impediments to equal opportunity.

Uncap was established to develop a one-of-a-kind and forward-thinking new method for funding early-stage entrepreneurs by utilising a remote, data-driven, and primarily automated procedure.

This organisation’s mission is to ensure that brilliant businesspeople have access to the financial resources that are essential to their success, regardless of factors such as gender, level of education, social background, or geographic region. Uncap’s primary mission is to promote the economic independence of female entrepreneurs, who are underrepresented in various fields.

“Our goal is to provide female founders with an egalitarian experience by redefining their fundraising path through Uncap’s automated, inclusive, and data-driven methodology,” explains Uncap Investment Principal Esther Ndeti.

In 2020, Uncap invested in 27 enterprises, and in 2021, out of almost 800 complete applications, 70 offers were made. It intends to more than treble last year’s total this year. Uncap has already parted ways with Ava Juliet Productions in 2022.

“Uncap aided the expansion of my media production company during the pandemic. I needed the funding for operations, salaries, equipment, and insurance.I was impressed by Uncap’s flexible payback terms, which were contingent on my revenue performance.” said Nathan Magoola, founder and content creator of Ava Juliet Productions.

Uncap aims to Bridge the Funding Gap for African Entrepreneurs [Photo/Africa Business Community]

How to Join the Revolution of Uncap

The application process for Uncap is entirely remote and focuses on quantitatively evaluating the founder’s capacity to create and scale a successful business.

Founders submit applications using the Uncap site and answer a series of questions and tests. There is no requirement for pitch decks or other evidence. Then, Uncap decides which businesses to invest in utilising a data-driven selection procedure

Businesses may submit funding requests to Uncap through the website’s application gateway. Applicants need only register an account and provide information about their companies to be considered.

They will be informed of their status as shortlisted once the application procedure, which includes a combination of cognitive and personality tests regarding the applicants and examinations of their business abilities and financial insights, is finished.

They will access automated KPI analysis and resources once both parties have signed the investment contract. The selected founders will also become members of Uncap’s expanding network of businesspeople, which they will have access to once they are accepted.

“We are now focusing on enhancing our help for entrepreneurs with tools to diagnose your existing gaps, access to the proper resources and support providers, and automated linkages with follow-on finance,” stated Franziska Reh, Uncap’s CEO and founder.

The application period begins on July 18 and ends on September 16. Register now to join Uncap’s funding revolution and access early-stage startup finance.

Read: Funding by Founders – the secret sauce for start-up success?

Maingi Gichuku is passionate about helping African businesses grow by offering technology solutions. With a BSC in Zoology and biochemistry, Gichuku yearns for an Africa that can find solutions to its challenges. My drive is to see an economically dynamic Africa and embrace its populations by creating opportunities cutting across the social and economic strata.

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