founded may 2006 1 headquarters copenhagen denmark area served africa key people mads kj r ceo 1 tim vang co founder 2 number of employees 7 1 website myc4.com 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 . contents 1 history 2 method of operation 3 major investments 4 risks 5 see also 6 references 7 external links history edit myc4 was founded as a joint venture in may 2006 by mads kj r chairman and former ceo of the kj r group and honorary danish consul to ethiopia and tim vang . 1 2 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 . 2 since the company s creation 19 073 investors from 115 countries have invested more than 15 million 3 in 8 334 businesses in seven african countries uganda kenya c te d ivoire rwanda ghana senegal and tanzania . 1 annual reports 4 and up to date statistics are available . 5 method of operation edit african businesses apply for a loan at a local credit provider 6 partnering with myc4 . 7 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 . major investments edit in december 2006 myc4 received a 670 000 grant from the danish aid agency under the danish ministry of foreign affairs . on 29 october 2008 the industrialisation fund for developing countries ifu decided to invest approximately 1.3 million in africa through myc4 . the minister for development cooperation of denmark ulla t rn s supports the decision . 8 risks edit as any investment lending money via myc4 carries risk . in the past a significant number of loans defaulted making investments effectively donations . after major restructuring it was hoped that losses will reduce . as a result of this the first quarterly report released in 2012 showed a portfolio risk that was the lowest in two years . this shows a net return for investors of 0.1 % . 9 potential investors should carefully read the risks page of the myc4 website . 10 the forum 11 where investors could discuss issues was disabled in october 2010 12 being replaced with a blog by the organizers . see also edit sustainable development portal microcredit person to person lending social entrepreneurship kiva references edit a b c d e catherine riungu july 13 2009 . east africa easy loans internet firm comes to the rescue of small business . allafrica . retrieved 2009 09 03 . a b c who is behind myc4 . myc4 . retrieved 2009 09 03 . cite error invalid ref tag ; name who defined multiple times with different content see the help page . countries . myc4.com . retrieved 2011 10 10 . annual reports . myc4.com . retrieved 2011 10 10 . myc4 loan statistics and data . wiseclerck.com . retrieved 2008 07 07 . providers . myc4.com . retrieved 2011 10 10 . how does myc4 work . myc4.com . retrieved 2011 10 10 . ifu investerer 10 millioner kr . igennem myc4 in danish . ifu.dk . retrieved 2008 11 28 . 1 risk description on myc4 website link to disabled forum on myc4 forum disabled . myc4.com . retrieved 2011 10 10 . external links edit myc4 website myc4 on cnn.com . retrieved 2012 07 17 . how myc4 works . 2012 07 17 . retrieved from https en.wikipedia.org w index.php title myc4 & oldid 725776317 categories microfinance organizationsorganizations established in 2006peer to peer charitiescharities based in denmarkhidden categories pages with reference errorspages with duplicate reference namescs1 danish language sources da navigation menu personal tools not logged intalkcontributionscreate accountlog in namespaces article talk variants views read edit view history more search navigation main pagecontentsfeatured contentcurrent eventsrandom articledonate to wikipediawikipedia store interaction helpabout wikipediacommunity portalrecent changescontact page tools what links hererelated changesupload filespecial pagespermanent linkpage informationwikidata itemcite this page print export create a bookdownload as pdfprintable version languages danskespa ol edit links this page was last modified on 17 june 2016 at 20 00 . text is available under the creative commons attribution sharealike license ; 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