Maydan Capital, which recently launched an equity crowdfunding platform that offers technology-focused investors ethical and Halal investment opportunities.
“Too often, when Muslims and other ethical parties are looking for solutions, they are limited to cherry-picking from what is available. For example, available solutions tend to focus on a limited number of asset classes, such as equities and property. We believe in creating an ecosystem that is specifically built for us.
“Additionally, we see the value in circulating capital within the ethical ecosystem. Currently, investments into general asset classes involve capital being extracted from the Muslim ecosystem. We aim to deliver solutions that encourage capital to remain inside our ecosystem,” Safdar Alam, CEO of Maydan Capital, tells IFN. Safdar, an Islamic banking veteran, has established and led the Islamic banking teams/businesses at several banks globally including UBS, Credit Agricole and JPMorgan.
The UK-based Shariah compliant platform is applying to become an appointed representative of Wahed Invest which is authorized and regulated by the Financial Conduct Authority.
Maydan Capital’s goal is to connect ethical investors with ethical companies. Particularly, it is targeting companies with a technology angle as well as an aspect of social impact or disruption. In a bid to preserve its ethical nature, Maydan will only invest in ordinary shares.
Currently, the platform is preparing transactions in the UK and Europe, Africa, the Middle East and countries such as India, Malaysia and Singapore, demonstrating its global ambitions.
Safdar further revealed that the platform has a captive investor network, and aims to execute an estimated 30 to 50 equity investments in the coming 12 months. Maydan caters to transaction sizes of US$100,000 to US$10 million.
“Our initial phase will focus on equity investment into start-ups and growth companies. We will also create new structures that benefit both investors and founders, such as [a] simple agreement for future equity (SAFE) agreements, and other non-dilutive solutions.
“Beyond this, we will move into new asset classes to support shorter-term capital deployment and liquidity, such as working capital solutions,” Safdar explains.
With an initial focus of execute equity investments, the platform will subsequently offer other services such as mentoring for early start-ups, incubators and accelerators. The fintech company will also begin to move into the working capital segment, to enable established companies to raise liquidity for the short and medium terms, and to enable investors to earn returns in periods of three to 12 months.
Over the longer term, Maydan has plans to diversify its offerings to include property and REIT solutions.