Now startups and emerging companies can raise funds without having to take a bank loan or wait too long to be able to join the stock market. VCapital Investments is an online venture capital and private equity platform connecting entrepreneurs with investors and facilitating deal processing and sourcing. It also offers a secondary market for trade and secondary sales.
The founder of the company, Bassem Alaa Fouad, and his partner, Abdelrahman Mohamed, a Finance Student in Wright State University, believe their new financial technology will boost economic growth in Egypt and foster entrepreneurship and innovation. VCapital will allow anyone, from accredited investors all the way to large institutions, to build an online portfolio of startups with very low commissions and minimums. VCapital also participates in due diligence and legal frameworks to protect investors and entrepreneurs throughout the process.
“Egyptians need to embrace technology and open their minds to more risk taking behaviors,” Fouad said.
He continued, “I founded VCapital to help startups raise capital and give accredited investors the opportunity to invest in companies they might not have access to.”
Investors in unlisted companies can enjoy greater returns in comparison to listed firms -although the risks are higher and they lack equity liquidity, i.e. the ability to exit. VCapital aims to provide information and discussions of multiple investment opportunities to help investors select the best investments suited for them and reduce their risk.
The startup also plans on providing a secondary market to create better liquidity through trade sale or secondary sale. The VCapital online secondary market is the first of its kind in the MENA region, where private equity investors can finally achieve transparency, liquidity and very low transaction costs.
The startup is believed to offer a super disruptive technology that will put investment banks out of business.