What is equity investment?

Equity investment is an investment of cash in return for shares in that business. The equity investor becomes a shareholder. Equity investment is not a grant and not a loan. Providers of equity funding are venture capitalists, private investors or private individuals.

Why choose equity investment or venture capital funding over other sources of funding?

With equity financing there are no annual repayments required or interest payments. All profits generated by the venture are reinvested into the operations. Sharaka and the promoters of the project make money only if the venture is successful. A common objective for the promoters and Sharaka is therefore to ensure the Success of the venture hence Sharaka reserves the right to have a seat on the board to monitor progress and provide timely advice.

How much will Sharaka invest or fund a project ?

Sharaka will invest not more than RO 160,000 into a single project where its contribution does not exceed 40% of the total equity. In the case of debt financing Sharaka will evaluate the project based on its merit and decide on the appropriate debt financing.

What is a loan?

A loan is another way of funding a business. A loan is borrowing money that needs to be paid back with an interest rate within a certain period of time. Sharaka also provides loans to entrepreauners at attractive rates. The terms of repayment, interest rate are based on merits of each project and are agreed upfront with the investor.

Why Choose a loan?

If your business venture requires short term financing a loan may be cheaper for you than equity. In the case of a loan you do not give a part of your ownership of the company. During start ups or expansions loans may be an extra expense that an entrepreneur needs to consider carefully in terms of commitment to make payments on a regular basis.

How do I find other investors in addition to Sharaka?

Sharaka works with a network of investors and funding organizations and will assist you to find and locate an appropriate funding organization

What stage of business does Sharaka invest in?

Sharaka invests in start ups and early stage and expansion projects

Will Sharaka be involved in the management of my project?

Once Sharaka agrees to fund your project an investment agreement will be worked out that will outline the aspects of management decisions that Sharaka needs to be involved in. Sharaka does not intend to get involved in the day to day operations of its investee companies but by having a seat on the board it intends to ensure that problems and any major issues faced by the project are dealt with in a timely manner

How long will the investment process take?

The investment process can take from 8-12 weeks. This is subject to the promoters providing all the relevant information such as the business plan and all the necessary documentation required. In the case of process or procedures that are not within the control of the fund the process may take longer

 How much will it cost?

Sharaka charges an arrangement fee which is usually a percentage of the amount invested an annual monitoring fee.
Transaction costs related to accountancy, legal services, research will also be deducted from any investment Sharaka makes into your company

What happens if Sharaka decides not to invest in a business?

We will do our best to inform you and provide you with constructive feedback as why we chose not to invest in your business. Hopefully the feedback will provide will assist you in exploring another line of business or in addressing some of the key concerns.

I don’t have a business plan can I still apply for funding?

Yes, please fill out the form to register your idea. We would like to inform you that we receive many proposals and can only invest in a small amount. It is therefore important that information provided is complete, clear and concise. Providing information in a clear and consistent manner will also speed up the processing time.