MYC4 is a company that allows its users to invest microcredits via an internet-platform in medium and small businesses in developing countries in Africa.
MYC4 was founded as a joint venture in May 2006 by Mads Kjær, chairman and former CEO of the Kjær Group and Honorary Danish Consul to Ethiopia, and Tim Vang. MYC4 is currently headquartered in Copenhagen, Denmark with a regional office in Nairobi, Kenya. As of beginning of 2011, it employs 7 people at its Danish office.
Since the company's creation, 19,073 investors from 115 countries have invested more than € 15 million in 8,334 businesses in seven African countries - Uganda, Kenya, Côte d'Ivoire, Rwanda, Ghana, Senegal and Tanzania.
Annual reports and up-to-date statistics are available.
African businesses apply for a loan at a local credit provider, partnering with MYC4. They specify the amount of money they need, the interest they would be willing to pay and the time they plan for repayment.
Investors who have created accounts on the website can choose from these third-world businesses, which they then bid money towards supporting. They specify an amount, a target interest rate and a minimum interest rate. This process is known as a Dutch auction method and guarantees that the interest rate will be as low as possible, depending on the investor bids. Depending on the amount of money offered by investors, and the interest rates, individual bids can proceed at the target or a lower interest rate, or be cancelled. A bid can be as little as €5, repayment times are usually 6 to 12 months, sometimes 2 years. Providers, Administrators and MYC4 itself all charge a fee for their services. They vary, but they are stated on each loan, in order to create transparency.