guidesInvestor

Investor Guide

Getting Started

Welcome to Catalyst! This guide will help you start investing in African SMEs and earn returns through our profit-sharing model.

Step 1: Create Your Account

  1. Visit the Investor Dashboard at https://investor.catalyst.com
  2. Click “Sign Up”
  3. Fill in your details:
    • Email address
    • Password (min 8 characters)
    • Full name
    • Phone number
    • Select “Investor” as your role
  4. Verify your email address
  5. Complete KYC verification (upload ID document)

Step 2: Fund Your Wallet

Option A: Nigerian Naira (NGN)

  1. Navigate to “Wallet” → “Deposit”
  2. Choose amount to deposit
  3. Complete bank transfer using provided details
  4. Funds appear in your wallet within 5-30 minutes

Option B: Cardano (ADA)

  1. Install a Cardano wallet:
  2. Purchase ADA from an exchange (Binance, Coinbase, etc.)
  3. Transfer ADA to your wallet
  4. You’re ready to invest directly from your wallet!

Option C: USDM Stablecoin

Similar to ADA, but using USDM for dollar-denominated exposure.

Step 3: Browse Investment Opportunities

  1. Click “Explore Opportunities”
  2. Use filters to find SMEs that match your criteria:
    • Location: Lagos, Abuja, Port Harcourt, etc.
    • Industry: Fashion, Food, Technology, etc.
    • Trust Score: Minimum reputation threshold
    • Funding Amount: Investment size range
    • Term Length: 3, 6, or 12 months

Step 4: Review SME Details

Click on any opportunity to see:

  • Business Information: What they sell, their story
  • Trust Score Breakdown: Platform trust, marketplace performance, customer feedback, financial history
  • Funding Details: Amount needed, profit share %, term length
  • Use of Funds: How they’ll use your investment
  • Previous Performance: Past profit reports (if available)

Step 5: Make Your Investment

NGN Investment:

  1. Click “Invest Now”
  2. Enter investment amount (minimum ₦1.00)
  3. Review terms and profit share percentage
  4. Click “Confirm Investment”
  5. Funds deduct from your wallet
  6. You’ll receive email confirmation

ADA/USDM Investment:

  1. Click “Invest with Crypto”
  2. Enter amount in ADA or USDM
  3. System shows NGN-equivalent value
  4. Click “Prepare Transaction”
  5. Your wallet app opens with transaction details
  6. Review and sign transaction in your wallet
  7. Return to Catalyst and click “Confirm”
  8. Enter blockchain transaction hash
  9. Investment confirmed within 5-10 minutes

Step 6: Track Your Portfolio

Navigate to “My Investments” to see:

  • Active Investments: Ongoing funding requests
  • Total Invested: Across all currencies
  • Expected Returns: Based on profit share %
  • Payment Schedule: When to expect profit distributions
  • Performance: How each SME is performing

Step 7: Receive Profit Distributions

When SMEs report profits:

  1. You’ll receive email notification
  2. Your share calculates automatically based on contribution %
  3. Profits deposit to your wallet (NGN, ADA, or USDM)
  4. You can reinvest or withdraw

Example Calculation:

  • You invested: ₦100,000 (20% of ₦500,000 request)
  • SME reports: ₦1,000,000 in profits
  • Profit share: 20%
  • Your gross share: ₦1,000,000 × 20% × 20% = ₦40,000
  • Platform fee (10%): ₦4,000
  • Your net profit: ₦36,000 (36% return!)

Step 8: Withdraw Funds

To withdraw from your wallet:

  1. Navigate to “Wallet” → “Withdraw”
  2. Select currency (NGN, ADA, USDM)
  3. Enter amount and destination:
    • NGN: Bank account details
    • ADA/USDM: Your wallet address
  4. Confirm withdrawal
  5. Funds arrive within:
    • NGN: 1-24 hours
    • ADA/USDM: 5-20 minutes (blockchain confirmation)

Understanding Risk

What Protects Your Investment?

  1. Trust Scores: Only vetted SMEs with proven performance or Agent sponsorship
  2. Profit Sharing: You only earn when SMEs profit (aligned incentives)
  3. Blockchain Escrow: Crypto investments locked in smart contracts
  4. Risk Mitigation Fund: 10% of platform revenue reserves for defaults
  5. Diversification: Spread investments across multiple SMEs

What Are The Risks?

  • SMEs may report lower profits than expected
  • Some SMEs may default or fail
  • Exchange rate risk for crypto investors (ADA, USDM)
  • Platform risk: Catalyst is early-stage technology

Recommendation: Start with small amounts (₦10,000-50,000) across multiple SMEs to learn the system and diversify risk.

Best Practices

Diversify Your Portfolio

Don’t invest all funds in one SME. Spread across:

  • 5-10 different businesses
  • Different industries
  • Different locations
  • Various term lengths

Review Trust Scores

Higher trust scores indicate:

  • Proven track record
  • Verified business operations
  • Positive customer feedback
  • Reliable payment history

Start Small

  • Begin with ₦10,000-50,000 per SME
  • Learn the system
  • Build confidence
  • Scale up gradually

Monitor Performance

Check your dashboard weekly to:

  • Track profit reports
  • See SME updates
  • Identify top performers
  • Adjust strategy

Getting Help

Next Steps

Ready to start? Sign up now and begin your journey supporting African entrepreneurs while earning returns!

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