Equity crowd funding
Crowdfunding is having a moment in South Africa. Besides the R500 000 raised for a service station attendant who came to the aid of a young woman by paying R100 to top up her tank, ‘the crowd’ recently invested R32.7 million in a start-up company. Crowdfunding, the practice of getting a large pool of people to support a project or person by investing a small amount of money each, is indeed gaining traction. Intergreatme, a company that allows people to electronically store and send documents to validate their identity, raised about R3 million more than it anticipated it would through an equity crowdfunding campaign in late May. BackaBuddy, the funding project used to raise money for service station attendant Nkosikho Mbele, for example, has so far generated over R107 million for various causes.
By: Larry Claasen