Work in Progress with Samuel Fianko: Funding startups – a journey of resilience and patience

Wisdom Anku, CEO of Propartners Exchange Limited

Propartners Exchange Limited started in 2016. By 2018, we felt the impact of a financial sector clean-up. The Securities and Exchange Commission (SEC) became stricter on our business model. We aimed to gather investments for small businesses through equity or debt partnerships.

At that time, we struggled to make progress. We needed an SEC license but faced regulatory challenges. There were no laws for models like ours yet. We were told to wait for crowdfunding guidelines, which took years to develop.

We waited over four years for these guidelines. During this time, we paid bills and maintained a small staff. Our funds dwindled, but we believed in our brand's potential. We built a strong relationship with the SEC throughout this period.

Currently, we are not fully licensed but our application is advanced. This journey has been challenging but rewarding. Although we're less liquid now, we've prepared ourselves to attract investors. Our board is strong and corporate governance is a priority.

We still have the same seven shareholders from the beginning. We're now engaging with potential angel investors as well. Despite low revenue, we've remained resilient and compliant with regulations.

Our mission focuses on helping small businesses access capital easily. We aim to drive employment and wealth creation through profitable MSMEs.

Sustaining the Business

It hasn't been easy to sustain operations while paying bills. We've pivoted by offering business support services like valuation services. Additionally, we've launched subsidiaries such as cleaning services and a restaurant brand.

These efforts have helped us stay afloat financially.

Difference from Venture Capital Firms

Our approach differs mainly in scale compared to venture capital firms. They represent traditional methods of raising capital for startups while we offer alternative investment options.

We focus on partnerships rather than strict funding requirements typical of venture capitalists. For example, if someone needs GH¢1 million but only has 35%, we help them find partners to raise the rest.

We offer two main services: equity partnership and investment crowdfunding. Equity partnerships involve pooling resources among partners for financing businesses while protecting everyone's interests.

Investment crowdfunding resembles a stock exchange where existing businesses issue securities for investors.

Vision for the Next 10 Years

In ten years, we want to build a strong brand with consistent service delivery. We'll remain agile in response to market changes and technology disruptions.

As our business grows, we'll expand our offerings beyond alternative funding sources into mainstream fundraising options too.

Advice for Aspiring Entrepreneurs

Business runs in my blood; my parents owned small businesses too. My background includes civil engineering and construction entrepreneurship over 25 years.

I understand the challenges young entrepreneurs face today and want to help them succeed through Propartners Exchange Limited's services.

Investing in small businesses can be more fulfilling than traditional savings methods like treasury bills or government bonds.

Entrepreneurship requires patience and resilience; money doesn't flow quickly when aiming for meaningful impact.

This interview was adapted from a conversation with Wisdom Anku by an experienced writer focused on African business stories.