Uncap Launches Unconventional Capital, a $33 Million Fund for Non-Dilutive Revenue-Based Financing in Africa
Uncap has launched Unconventional Capital, a $33 million fund designed to provide non-dilutive, revenue-based financing to small and medium-sized enterprises (SMEs) across Africa.
Non-dilutive financing is a mechanism that allows businesses to access resources without affecting their ownership structure. This includes public aid in the form of grants, recoverable advances, or, as in the case of this fund, revenue-based financing. Revenue-Based Financing is an alternative investment model where investors provide capital to a business in exchange for a percentage of the company's total revenue. This approach differs from conventional investments based on equity, such as venture capital and impact investing, as well as debt financing. It is a simpler process that requires less documentation.
The fund, supported by institutions such as the Bill & Melinda Gates Foundation and the Bayer Foundation, aims to unlock the growth of African SMEs in high-impact sectors. Representing 90% of Africa's entrepreneurial fabric, these businesses are the true drivers of growth and development. Financing will range from €20,000 to €100,000. To be eligible, businesses must demonstrate a minimum revenue of €80,000 over the last 12 months and have at least two years of existence.
