Whether you are looking for money to start or expand your business or for any other cause, you need to find an excellent platform. Crowdfunding requires one to run online campaigns to get people to fund their projects. After Crowdfunding, these platforms take a small percentage of the funds raised. Crowdfunding platforms help one to raise and monitor funds. The following are some of the best Crowdfunding platforms in South Africa.
Thundafund is the best crowdfunding platform in South Africa. It was founded by Patrick Schofield. It was created “by Africans for Africans”. Entrepreneurs can use Thundafund to crowdfund capital for their businesses. Entrepreneurs raise funds by giving rewards to encourage people to crowdfund. An entrepreneur is expected to give back to the investors. Apart from crowdfunding, Thundafund also offers business mentorship. Thundafund charges a 7% fee of the funds raised for normal projects and 5% for registered NGOs.
2. Jump Starter
Jump Starter is a nonprofit Crowdfunding platform in South Africa. It was started in 2011 to help entrepreneurs raise capital. Project owners receive funding from investors in exchange for rewards. Jump Starter supports projects in different categories like agriculture and SMEs. Jump Starter charges a 3.5% fee for projects posted on their platform. Your business must meet the following requirements:
- Have a deadline for the project
- Have a funding goal
- The entrepreneur must decide rewards to give to investors
- Have a business image and video
3. The People’s Fund
The People’s Fund was started in 2017 to help black entrepreneurs fund their businesses. It partners with networking communities in South Africa. To use the platform, you must be a black entrepreneur with an innovative business idea. You are also expected to hook up your business idea to any of The Hook Up Dinners. You can use the platform to raise funds to buy a business asset. Investors are then paid a royalty for the time the asset is productive to the business.
4. Uprise Africa
Uprise Africa is an equity-based crowdfunding platform in South Africa that started in 2017. The platform allows investors to raise capital for a startup in exchange for shares. Entrepreneurs willing to raise money through the platform must be ready to answer any questions that investors may have and also have FICA documentation. The maximum funding limit on the platform is R50 million. Uprise Africa also creates a place where entrepreneurs can interact with investors and get feedback.
5. South African Angel Investment Network
South Africa Angel Investment Network is a paid membership crowdfunding platform. Entrepreneurs can pitch their business idea to local and international investors. An entrepreneur can set the minimum amount an investor can raise. An entrepreneur is expected to introduce their business and the cause for crowdfunding. A business must have a website and a registered business name to crowdfund on this platform. Entrepreneurs also benefit by networking with investors.
6. Venture Capital for Africa (VC4A)
Venture Capital for Africa is a crowdfunding platform that connects entrepreneurs with investors. It also provides businesses with mentorship programs. Entrepreneurs also get access to startup tools and methods necessary to elevate their businesses. It also allows investors to research companies with great potential and reach out to founders directly. To raise capital, you need to register on VC4A and list your profile. VC4A does not have hidden fees.
StartMe is also an excellent crowdfunding platform in South Africa. It was started by Lourie Nel and Ben Botes in 2011. StartMe enables project owners to crowdfund by giving incentives to investors after 90 days.
Summary on Crowdfunding Platforms in South Africa
If you have a business idea or want to expand your business, you can crowdfund using the above platforms. Some of these platforms give entrepreneurs other benefits like mentorship and networking with investors. When selecting a crowdfunding platform in South Africa, make sure to compare prices.