Kenya-based 4G Capital, a fintech company focused on empowering businesses in East Africa with micro-financing and business training to help informal SME businesses attain sustainable growth has partnered with Finhaven to provide qualified investors with the unique opportunity to participate in the issuance using cryptocurrencies.
The partnership also represents Africa’s first ever blockchain fund raising platform for microfinance. Finhaven’s equity and debt issuance platform utilizing the Ethereum blockchain for the creation of tokenized securities.
Finhaven relies on its proprietary coding and smart contracts to ensure that the creation, sale, and future resale of these security tokens will all be in compliance with applicable securities laws.
4G Capital gives SMEs access to credit and the skills to use it correctly. It provides each client with business training which enables them to use the credit we provide to positively grow their business.
“Conventional service providers see this as an insurmountable challenge. We see it as an opportunity to utilize data in ever smarter ways. Using our proprietorial machine learning system, we’ve found ways to use data from multiple sources to design credit products at scale which are optimized for segments, business risk, timescale and affordability,” the team says on its website.
The firm is expanding across Kenya, Rwanda and Uganda, creating a ladder of opportunity for those in most need to realise their aspirations.
Building on top of the Ethereum blockchain for issuance of security tokens, secure portfolio wallets, and an audit layer providing a log of transactions, Finhaven enables the creation of a unique token for each issuer. The Bitcoin blockchain powers Finhaven’s remittance layer, where investors accumulate Bitcoin (”BTC”) as the return from their investments.
The launch follows the close of USD $1 million in seed funding for Finhaven from Korean venture capital and private equity firm, Medici Investments.
4G Capital and TIMIA Capital will be collectively raising approximately USD $15 million. Vancouver-based TIMIA Capital specializes in providing revenue financing to software-as-a-service (”SaaS”) companies in exchange for payments based on revenue.
TIMIA also looks forward to utilizing the efficiency of Finhaven’s blockchain powered issuance system to create new financing products that better meet the needs of its customers.
Notably, Finhaven’s platform provides issuers with an innovative approach to the capital markets, making it easier, less costly, and more secure to raise global capital. Tokenized equity and bonds provide businesses with access to new markets, asset liquidity, programmable assets, secure and immutable data, and auditable trails of ownership.
Finhaven is currently working to open a blockchain-based securities exchange, and is working with securities regulators to secure the necessary approvals. Once approved, this will position the company as an end-to-end solution for issuing, investing in, and trading regulatory compliant security tokens.