Mads Kjær is our co-founder and CEO, but at the same time the largest investor on MYC4 with more than €600,000 invested on several accounts with different purposes. So after a couple of other investor testimonials, why not take a chat with Mads to hear a little about what his motivation is for using MYC4 and how he invests his funds.
Why do you invest on MYC4 – what’s the first thing that comes to mind?
For me investing on MYC4 is one of the reasons that I created the company MYC4. The idea of allowing anybody from anywhere to take action and support a small business of their own choice. Secondly it’s important for me to do both social and financial impact and I find both at my fingertips on MYC4’s platform.
You have several investor accounts; can you tell us a little about the accounts? Do you use different bidding strategies etc.?
The investor accounts have been created at different times. In 2012, I opened two new accounts with €400,000 and €150,000 to start building new portfolios without the track record of learnings from 2007 to 2009.
As to bidding strategies – I like to see the bid bar getting GREEN, so I will often fund small loans at the offered interest 100% and then the crowd funding and Dutch-auction will take its toll.
What is your motivation for using MYC4 to invest in African entrepreneurs?
Over the last 30 years travelling, working and living in Africa I have seen that there is a strong spirit of entrepreneurship and hard work setting up and running a small business. Often the media in Denmark focus on the challenges of Africa; war, corruption, diseases etc. and it’s a part of Africa, yet the coin has also a hard-working side of women and men who take charge and responsibility of their own lives.
What’s the best and worst thing about MYC4?
I can access the platform from anywhere in the world and do my daily portfolio management investing in small businesses in East Africa. For me the worst is when a loan is closing without the bar turning green, in other words that there was not enough capital available to fund.
What do you emphasize when you present MYC4 to somebody who has never heard about us before?
It’s a way to look at Africa like a business case. MYC4 is a platform like eBay is a platform, yet with MYC4 it’s about crowd funding where the Lender and Borrower are doing a loan transaction.
Who do you consider as competitors/alternatives to MYC4?
I have accounts on e.g. Kiva and Babyloan to learn and support – yet must say that MYC4 is both of them and a lot more. If you are a social investor you can lend out your funds directly on MYC4 at 0% interest like on Kiva, yet you can also see the actual cost for the borrower and choose next time to ask for a financial return beyond the social.
I see several challenges like;
– More liquidity on the platform to fund the growing number of borrowers.
– New loan products for e.g. solar, housing, health etc.
– Better user interface like e.g. a responsive site adapted to PC, tablet and smart phone automatically.
– MYC4 as an APP.
Last but not least, what do you think MYC4 will look like in 3 years?
In 3 years MYC4 will reach over 1 million small business loans in East Africa and is on its way to roll out in other African regions, Latin America, India, Asia and Europe.