UK FinTech operator Maydan Capital unveiled an equity crowdfunding platform on Thursday offering tech-focused investors vetted, early stage, ethical and halal investment opportunities.
The company’s fundraising platform aims to help early-stage companies in their initial stage of growth combat common funding barriers by promoting their investment opportunities to family offices, institutional, international and traditional investment communities.
Maydan, a subsidiary of global financial investment platform Wahed, which offers ethical and halal investing to 200,000 global customers including residents in the US, UK and the UAE, expects the majority of its deals to occur in the technology sector, with issuers pursuing capital raises with targets between $100,000 and $10 million.
Safdar Alam, chief executive of Maydan, said despite surging growth in institutional flows in money markets and the debt capital markets over the past few decades, the benefits to investors and entrepreneurs have lagged behind.
“An ethical investor has very little access to supporting growth businesses that align with their values, especially opportunities that have been highly vetted to a professional degree,” Mr Alam said.
“Our platform allows capital groups around the world to exponentially increase their exposure to quality, ethical opportunities in the tech market.”
The $2.4 trillion Sharia-compliant finance industry, which bans interest payments and pure monetary speculation, is expected to register growth of 10 to 12 per cent this year and next, according to S&P Global Ratings.
The industry grew by 10.6 per cent in 2020 on the back of higher-than-expected sukuk issuance, the rating agency said, with growth of 17.3 per cent in 2019.
Investors increasingly want to park their money in companies that are not only competitive but also ethical, with those investing through the Maydan platform offered access to both capital and deal flow.
Junaid Wahedna, chief executives of Wahed, said Maydan’s new platform marks a step towards Wahed’s aim to build an Islamic marketplace that meets the growing demand for socially conscious investors.
“Their position in our group ensures that growth companies can access a world-class platform connected to a very significant pool of ethically-minded investors and networks.”