Kenya - Business creation project

Describe your project or startup in a few words

Backd connects everyday Kenyans, and Africans with innovative to crowd-sourced equity investments. We're building the future of African investment, making it easier, more accessible, and community-driven. Building Africa's future, one click at a time!

01.01 Describe your project in more detail

Fundraising in Africa for start-ups is hard! Startups make up to 99% of small and medium-sized enterprises which account for a staggering 90% of businesses worldwide. But these essential enterprises often struggle to get the funding they need to grow. The IFC estimates that 43% of SMEs in developing nations have unmet financing needs totaling more than $5 trillion each year. According to Marcus Wagner, a researcher, and an investor approximate the timeframe for closing a round in Africa is 6-9 months on average. This means startups with less than adequate runway die before they have had a chance to raise a round. Equidam research also shows that startups need more than 6 tools with an approximate cost of $1450 monthly to run their fundraising process, even further draining the already dwindling runway. Backd aims to help African founders raise their rounds 10X faster, more efficiently, and quicker by introducing a new way to fundraise and tapping into the local investment space.

01.02 What is the main problem you are trying to solve?

1. Finding Investor Fit Finding investor fit can be daunting for founders, who must locate backers who share their vision, add value, and secure funding. Investor ecosystems are closed and based on referral as a founder you have to talk to everyone spending limited time on investor fit for your startup and sometimes you don’t find one. 2. Limited investor resources. Due to current practice, only sophisticated investors can participate in private markets, which limits the amount of capital all these startups are competing for. With new laws allowing unsophisticated investors to participate, we can increase access to capital. 3. Time drain & cost Founders can feel drained when they have been trying to close a round for more than 9 months(according to research) while operating on a dwindling runway and getting 'no's from unsuitable investors.

01.03 Tell us the major benefits and/or advantages of using the product/service that your project intends to provide (at least 3).

For startups; Value Proposition: Faster, easier, and more accessible fundraising. Primary Benefits: Speed: Raise capital in days instead of months compared to traditional methods. Accessibility: Reach a wider pool of potential investors beyond personal networks. Reduced Costs: Potentially lower fees compared to traditional fundraising structures. Increased Visibility: Gain exposure to a broader audience and potential customers. Validation and Community Building: Successful campaigns can validate your business idea and build a community of supporters. For Investors: Value Proposition: Access to a wider range of vetted investment opportunities and the ability to invest in smaller amounts. Primary Benefits: Deal Flow: Discover exciting startups you might not find elsewhere. Investment Diversification: Spread your investment risk across multiple startups. Lower Investment Minimums: Invest in startups with smaller amounts.

01.04 Please describe who exactly your project is aimed at serving. Who are the targeted beneficiaries?

1. Startups Seeking Capital: Key characteristics; Early-stage or growing businesses in need of capital for development. Frustrated with the time-consuming nature of traditional fundraising. May lack extensive networks or a proven track record for traditional investor 2. Unsophisticated investors, diaspora Africans and foreign nationals Interested in local Startups and private markets: Key Characteristics; Interested in supporting startups and potentially high returns. Want a platform to discover promising investment opportunities. Value co-investment and collaboration with other investors to share risks and insights. May be accredited or non-accredited investors, with the platform catering to investment amounts they can afford (often lower minimums than traditional methods). Africans working abroad and looking for an opportunity to invest back home, and make an impact

01.05 When did you start working on your project?

2024-01-31

01.06 How many other partners are associated with your business venture?

3

01.07 Among the other partners, how many are female?

1

01.08 Please describe the profile of each of the other partners (skills, experience, etc.)

Name: Peninah Kimiri Background: M.A in Counseling Psychology and 10 years experience in the non-profit sector - Key Skills: Operations, Research - Experience and Expertise: -Cofounded GenderJobs.org, a tech-enabled solution to connect gender professionals to opportunities and link organizations to gender talent. Name: Jack Githinji - Background: LL.B, 8 years experience in law and a serial entrepreneur in tech-enabled solutions(3years) - Experience and Expertise: Exited co-founder of Attorn, a B2B platform provides flexible legal outsourcing and delegation platform to help legal teams manage large projects. Exited Adamur, an upskilling platform for upskilling tech talent. - Name: Ian Kibandi - Background: BSc. in Mechatronics, Robotics, Automat Robotics, and Engineering and 4 years experience as an entrepreneur and Software Engineer. - Experience and Expertise: As the founder of Dev Canary, a visionary software agency and headed development at Tusenti(a fintech solution in Kenya)

01.09 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link here:

https://backd.vc/invest

01.10 Which industry best describes your project?

g) Financial services

02.01.01 My project contributes to the No poverty goal

7 - Strongly Agree

02.01.02 No poverty - Justification

• Jobs & Investment: Backd connects startups with everyday investors, fostering job creation & financial inclusion in Africa. • Youth Entrepreneurship: Backd empowers young Africans with innovative ideas to launch businesses, driving economic growth. • Sustainable Development: Backd prioritizes businesses tackling social & environmental challenges, promoting long-term poverty reduction. • Empowering African Markets: Backd's potential lies in unlocking investment, building a stronger future for Africans and empowering local SMEs to complete at the global stage.

02.02.01 My project contributes to the Zero hunger goal

4

02.02.02 Zero hunger - Justification

02.03.01 My project contributes to the Good health and well-being goal

4

02.03.02 Good health and well-being - Justification

02.04.01 My project contributes to the Quality education goal

4

02.04.02 Quality education - Justification

02.05.01 My project contributes to the Gender equality goal

4

02.05.02 Gender equality - Justification

02.06.01 My project contributes to the Clean water and sanitation goal

4

02.06.02 Clean water and sanitation - Justification

02.07.01 My project contributes to the Affordable and clean energy goal

4

02.07.02 Affordable and clean energy - Justification

02.08.01 My project contributes to the Decent work and economic growth

7 - Strongly Agree

02.08.02 Decent work and economic growth - Justification

• Job Creation Engine: Backd fuels job growth by connecting startups with investors, empowering them to hire more. • Youth Entrepreneurship Boost: Backd empowers young Africans with innovative ideas to launch businesses, becoming significant job creators. • Financial Inclusion Matters: Backd allows everyday people to invest, fostering a sense of ownership and potentially stimulating local job creation. • Targeting Underserved Sectors: Backd can target funding towards sectors with limited employment opportunities, promoting economic diversification and new job markets. • Decent Work Advocate (Optional): Backd can encourage fair labor practices and employee development within supported businesses.

02.09.01 My project contributes to the Industry innovation and infrastructure

7 - Strongly Agree

02.09.02 Industry innovation and infrastructure - Justification

• Funding Innovation: Backd connects startups with investors, fueling innovation across various African industries. • Sustainable Infrastructure: Backd can support businesses developing innovative solutions for sustainable infrastructure, like renewable energy or waste management. • Inclusive Industrialization: By promoting entrepreneurship in underserved regions, Backd fosters geographically inclusive industrial development. • Tech-Driven Solutions: Backd can become a platform for startups developing tech-based solutions in various industries, driving overall innovation. • Bridging the Gap: Backd can connect investors with businesses lacking access to traditional funding sources, accelerating infrastructure and industrial development.

02.10.01 My project contributes to the Reduced inequalities goal

7 - Strongly Agree

02.10.02 Reduced inequalities - Justification

Financial Inclusion for All: Backd allows everyday people to invest, democratizing access to wealth creation opportunities and reducing income inequality. • Empowering Underserved Communities: Backd can target funding towards businesses in underserved regions, fostering economic growth and reducing geographical disparities. • Supporting Diverse Entrepreneurs: Backd can promote access to funding for startups led by women, minorities, or individuals from low-income backgrounds, tackling social and economic inequalities. • Transparency & Trust: Backd prioritizes platform transparency, building trust in the investment process and reducing barriers for new investors, particularly those unfamiliar with equity investing.

02.11.01 My project contributes to the Sustainable cities and communities goal

5

02.11.02 Sustainable cities and communities - Justification

• Sustainable Urban Solutions: Backd can support businesses developing innovative solutions for sustainable cities, like waste management, renewable energy for urban areas, or smart infrastructure projects. • Community-Driven Development: Backd's focus on empowering local entrepreneurs can foster community-driven development initiatives that address specific needs in urban areas, like improved sanitation or affordable housing solutions. • Financial Inclusion for Urban Growth: Backd allows everyday citizens to invest in businesses tackling urban challenges, promoting a sense of ownership and participation in innovations helping in shaping sustainable cities.

02.12.01 My project contributes to the Responsible consumption and production goal

5

02.12.02 Responsible consumption and production - Justification

• Sustainable Businesses: Backd prioritizes businesses adopting sustainable practices, promoting a circular economy in Africa. This could involve businesses focused on recycling, resource efficiency, or waste reduction. • Impact Investing: Backd can connect investors with businesses offering sustainable products or services, encouraging responsible consumption patterns. • Transparency as Key: Backd's focus on transparency allows investors to make informed decisions based on a business's environmental and social impact, fostering responsible production.

02.13.01 My project contributes to the Climate action goal

4

02.13.02 Climate action - Justification

02.14.01 My project contributes to the Life below water goal

4

02.14.02 Life below water - Justification

02.15.01 My project contributes to the Life on land goal

4

02.15.02 Life on land - Justification

02.16.01 My project contributes to the Peace justice and strong institutions goal

4

02.16.02 Peace justice and strong institutions - Justification

02.17.01 My project contributes to the Partnerships for the goal

7 - Strongly Agree

02.17.02 Partnerships for the goal - Justification

• Collaboration for Impact: Backd fosters partnerships between investors, entrepreneurs, and local organizations, mobilizing resources for sustainable development in Africa. • Knowledge Sharing: Backd can become a platform for knowledge sharing and capacity building within the African entrepreneurial ecosystem, accelerating progress towards SDGs. • Global Investment Bridge: Backd connects African businesses with global investors, strengthening partnerships for sustainable development goals.

05.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

3

05.02 The product/service we envision creating represents an entirely new type of product/service.

7 - Strongly Agree

05.03 The product/service we envision creating could be described as a new technology.

1 - Strongly Disagree

05.04 The product/service we envision creating is an improvement on an existing product or service.

7 - Strongly Agree

05.05 The product/service we envision creating could be described as an extension of a range of products or services.

7 - Strongly Agree

05.06 The product/service we envision creating responds to a demand or need that has not been satisfied by other products/services.

7 - Strongly Agree

05.07 The product/service we envision creating is a new version of an old product/service.

7 - Strongly Agree

05.08 Justification

AI-powered Matching: Ditch one-size-fits-all! Backd uses AI to connect investors with startups based on interests & risk tolerance. W3 Innovation: We explore DeFi for fractional ownership (lower barriers) & DAOs for community-driven deal selection.

05.09 Who are your main potential competitors and what makes you stand out from them?

Getequity - Nigerian focus, initially offered a platform for retail investors to buy equity in startups but now they are shifting their focus to offering a wider range of investment options including commodities and bonds. Republic - American startups, market focus - USA and Europe, offering a platform for retail investors to buy equity in startups. Crowdcube Market focus on Asian and European markets, offering a platform for retail investors to buy equity in startups. Back'd brings new thinking to African crowd equity by harnessing the power of automation and W3 technologies; Automated Investor Targeting: Leverage AI and machine learning to match investor profiles with suitable startups based on their interests and risk tolerance. W3 Integration for Innovation: Explore DeFi (Decentralized Finance) to create Security Tokens and enable fractional ownership, making investment more accessible. Consider DAOs (Decentralized Autonomous Organizations) to empower a community-drive

10.06 Are you initiating actions within your community to promote the role of female entrepreneurs?

Yes, one of our co-founders is a female and has a community helping GBV victims learn critical entrepreneurship skills. We aim to create a studio as part of our scaling to enable this women to create sustainable ventures.