Crowdfunding Update – McKinsey Voices, Fajr Capital & Crowdfunding for the Middle East

Jay Owen Crowdfunding

Crowdfunding Global Update

  • McKinsey Voices Article
  • Crowdfund Investing in Muslim Markets Paper
  • Muslim Market Self-Assessment Tool

Dec 5, 2013

Dear Hazel,

Here are two new pieces of research that provide unique views on the near-term opportunities for crowdfunding and entrepreneurship in the middle east region. They look specifically at how crowdfunding is also aligned with the principals of Islamic Finance.  We are pleased to share this research that we conducted in partnership with Fajr Capital, a private equity and advisory firm that is based in Dubai and has deep expertise in Muslim markets.

1) McKinsey publication Voices published a joint article from Fajr Capital Advisors and CCA on ways that entrepreneurship can be a stabilizing force in the middle east and common sense crowdfunding policy can enable more entrepreneurs to build businesses in the region.  Countries in the Middle East need to create as many new jobs in the coming years, as currently exist today.  This daunting challenge will require a range of new solutions.  Crowdfund investing is one solution that is worthy of serious exploration.

2) Crowdfund Investing in Muslim MarketsAn Action Plan for Governments.   This paper outlines reasonable and focused steps that governments and institutions can take in harnessing the power of social media to raise capital while turbo charging existing efforts to build entrepreneurial ecosystems (training, capacity building, incubators, accelerators, etc).  It also demonstrates how the principals of crowdfund investing and Islamic Finance are inherently compatible and mutually reinforcing.  The principals of building community, encouraging risk sharing, democratizing wealth and channeling wealth to real economic activity are shared by both Islamic Finance and crowdfund investing.  Governments in Muslim Markets have a unique opportunity to make significant advances by creating reasonable regulatory frameworks that facilitate entrepreneurship and investment while accommodating the needs of Shari’a sensitive investors and entrepreneurs.

3) Is your country ready for crowdfunding?  Use this self-assessment tooland get your own country report.

Over the last 20 months, CCA has worked with investors, governments, multi-lateral organizations and entrepreneurs in 24 countries.  This work has enabled us to gather best practices, create original research and strategies, and help clients to convert conversations and theory into actual practice.

We look forward to working with clients in creating early stage finance strategies (including crowdfunding and angel investing) to reach their 2014 goals in deploying capital, entrepreneurial capacity building and policy implementation.  Please contact us to learn more about our services and how they can benefit you.

Warm Regards,