1. What is crowdfunding? How it works? What is Harhubfundraiser?
Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure. Harhub fundraiser is the first donation based entrepreneurial crowdfunding established by Harhub to provide alternative forms of financing for early stage entrepreneurs in Somaliland.
2. If someone raises money through crowdfunding, is that person going to repay that money?
No. All the money you raise on the crowdfunding will not be repaid. It will be your money, and you fully own it.
3. Why are we going to raise money like beggars?
Crowdfunding is a new concept but has been a game-changer for startups because it gives nontraditional entrepreneurs access to different sources of capital. Crowdfunding has helped thousands of entrepreneurs raise billions of dollars in funding their startups. When you’re an early-stage company focused on building your business and attracting seed capital, you might not be able to afford all the time and attention that pursuing traditional financing demands. Compared to applying for a loan or seeking out accredited investors yourself, setting up a successful crowdfunding campaign on a Harhub crowdfunding platform is far more efficient and effective in getting your message out to the right people. With the right platform, you can tell your business’s story, produce a quick video, set up some enticing rewards, and benefit from having everything in one centralized location where potential backers can find you.
4. Who guarantees our intellectual property not stolen if my business idea goes to crowdfunding?
Harhub cannot guarantee your intellectual property rights. Harhub can only publish general information of your business but not your business recipe, the key to success or any other confidential information. You will fully authorize what we will go public. We believe that your vision, passion, and commitment cannot be copied.
5. Who will guarantee the jury members do not steal our business idea or tell their friends? It did happen several times.
Harhub investment jury will sign a confidentiality agreement which every one of the jury members will agree not to disclose confidential information that they have shared.
6. How Harhub is different from MFIs? What makes your process different from banks?
Harhub provides a unique service that differs from the banks and microfinance institutions including business development training, mentorship, crowdfunding, incubation, pitching, and equity fund.
7. How long is the payback period for instance if someone borrows 5k?
We will define this in the investment guide.
9. What about if I bring my 50% contribution without campaigning the crowdfunding?
Yes. You can skip the crowdfunding campaign if you bring your 50% contribution in cash.
10. NGOs are bureaucratic and it takes so long to receive money after all effort made, how long will it take the whole process?
Harub will try its level best to streamline and simplify the process. We are expecting that the entire process will be longer than four months. However, it will be considered case by case. Some business cases will take longer time and some shorter. It will be deliverable based.
11. Who is going to raise the fund for my business owner or Harhub?
This will be joint effort both Harhub team and you. Harhub team will develop your communication materials like videos,posters, stories, create an account, etc. and you will do the essential part which is fundraising and making sure your campaign goes viral to get more backers.
12. What about if someone doesn't want to post their picture or video as part of the campaign plan?
Everyone has the right to refuse to post their pictures and videos on the crowdfunding platform. The only objective needed for image and videos is to help ease your campaign.
8. What about if I raise all my startup capital through the crowdfunding to avoid Harhub equity or loan?
This is totally Ok. You can raise all your fund on the crowdfunding.
13.If I'm going to raise funds through family and friends,
why should I use crowdfunding I can go and collect money or they can simply send to my ZAAD rather than your account?
Both options are available. You can either raise your fund on the platform or your own method. Harhub only requires a 50% contribution to your total startup capital.
14. After I go long process what about if I’m not selected or win?
Everyone who will go through the accelerator will not win. Only some entrepreneurs will prevail for the matching fund. It depends on how fast you raise your 50% contribution. If you don't win, you still benefited our accelerator training and became familiar with our process which will help you later to win easily.
15. How many people will be benefiting the program?
Harhub is expecting 26 successful entrepreneurs to benefit from our 2019 accelerator program.
16. If I accept the equity, will you share with risk if the business fails?
Yes. Harhub will share only risks related to natural disasters like theft, floods, firebreaks, but not negligence. The risk shares will be based on the percentage of the equity agreement.
17. As equity owner, what will be your day-to-day responsibilities of the business?
This will be defined case by case agreement as entrepreneurs will differ one another.