Growth boosters: Crowdfunding democratising capital raise & investments

The landscape of business financing in Nigeria is undergoing a transformation, with crowdfunding emerging as a legitimate and regulated avenue for raising capital. Growth Boosters, a pioneering company in this space, has been at the forefront of this evolution, enabling businesses to access funding from a diverse pool of investors. Ololade Adesola, Co-Founder of Growth Boosters, shed light on the regulatory framework that has shaped the crowdfunding space in Nigeria during an exclusive interview with CNBC Africa. Regulation has played a pivotal role in defining and legitimizing crowdfunding in Nigeria. Previously, individuals could solicit funds for personal projects with little oversight. However, with clear regulations in place, companies like Growth Boosters now serve as intermediaries approved by the Securities and Exchange Commission (SEC). These platforms provide a curated space for investors to explore various business opportunities seeking funding through reward-based crowdfunding. The regulatory framework has not only separated roles but also established guidelines that safeguard the interests of all stakeholders. Functioning akin to traditional stockbrokers or money market players, Growth Boosters meticulously assesses the viability of business proposals using cutting-edge technology. Through an AI credit appraisal software, financial data is analyzed to evaluate the capacity and willingness of businesses to repay investors. The platform employs a thorough due diligence process to ensure that only high-quality businesses are showcased on its portal, fostering investor confidence and trust. While crowdfunding presents lucrative opportunities, it also harbors inherent risks. To mitigate these risks, Growth Boosters primarily focuses on asset financing, steering clear of ventures that involve high liquidity challenges like working capital support. By aligning investment opportunities with tangible assets and cash flow projections, the platform ensures a robust repayment structure, bolstering investor security. Moreover, the implementation of corporate trustees further fortifies the investor protection framework. These trustees oversee the post-disbursement phase, ensuring that funds are utilized as intended and upholding transparency and accountability in the crowdfunding ecosystem. By prioritizing risk management and regulatory compliance, Growth Boosters aims to set a benchmark for ethical and sustainable crowdfunding practices in Nigeria. The democratization of capital through crowdfunding empowers both businesses and investors, fostering inclusivity in the financial landscape. By enabling retail investors to participate in ventures traditionally limited to institutional players, Growth Boosters is bridging the gap between capital seekers and investors. This inclusive approach not only diversifies investment opportunities but also cultivates a sense of community support and trust within the local entrepreneurial ecosystem. As the crowdfunding market matures, challenges in compliance and regulatory adherence continue to be areas of focus for Growth Boosters. By aligning with SEC guidelines and enhancing reporting standards, the platform is committed to upholding transparency and regulatory integrity. Capacity building initiatives are also underway to educate fundraisers on their obligations and ensure seamless regulatory compliance. In a rapidly evolving financial landscape, regulated crowdfunding stands as a beacon of innovation, revolutionizing the dynamics of capital raising and investments in Nigeria. With a steadfast commitment to ethical practices and investor protection, Growth Boosters is poised to reshape the narrative of business financing, one crowdfunding campaign at a time.