Getting a loan from a bank in Africa is hard for most and for some businesses it is impossible. In fact, an estimated 450 million companies worldwide cannot get a loan from a bank to hire employees, invest in marketing and grow their business. GrowthBond offers small and medium sized business in emerging markets an alternative — and is today launching a new campaign to back 4,000 businesses with funding by the end of 2019.
Here’s how GrowthBond works: GrowthBond invests up to $50,000 in active companies on Facebook with positive ad spend and positive unit economics after GrowthBond has reviewed the company’s marketing and revenue data. GrowthBond normally approves the funding within 24 hours and doesn’t require a personal guarantee, collateral and seek to invests in the company as it grow, so long as ad spend and unit economics remains positive.
All kind of funding processes whether it is venture capital, bank loans or microfinance usually takes months. GrowthBond is cutting that process out entirely, relying on just two metrics and a platform. If a company’s Facebook ads and Stripe or Paypal sales metrics are positive, GrowthBond issue credit for the companies to hire internet marketing experts and increase their Facebook and Google ad spent. Essentially, GrowthBond offers an alternative to expensive bank loans and trying to raise venture capital which is close to impossible in most emerging markets.
GrowthBond’s business model is a 20% commission it splits with investors; A model that depend highly on GrowthBonds ability to accurately assess the demand for the product it is backing. If the marketing campaigns fail, money is not repaid and GrowthBond and investors suffers. GrowthBond is highly vulnerable to changes in the ad market and the two major platforms such as Facebook or Google. If the “duolopuly” increase the cost of advertising it hurts GrowthBonds business model.
Media Contact
Company Name: Growthbond
Contact Person: Ferdinand
Email: Send Email
Phone: 0045 22 32 02 14
Country: Denmark
Website: www.growthbond.co