DURBAN - Uprise.Africa is an equity crowdfunding platform that launched in 2017.
The crowdfunding platform, which recently helped a startup beer company raise R1 million in 24 hours, is different from other crowdfunding platforms, simply becuase they are an equity crowdfunding platform.
But what exactly is equity crowdfunding? Equity crowdfunding according to Entrepreneur Magazine, is when members of the public (the crowd) are offered equity (shares) in a company (generally a start-up) in exchange for funding.
This platform can be beneficial to startups or small businesses that are looking to raise funds for their entrepreneurial pursuits.
There are certain requirements that need to be met in order to use Uprise.Africa as a source of crowdfunding.
The basic profile of the business requres:
1. Small to medium enterprises
2. Businesses which have the potential for good returns (10% to 40% plus) with a strong team.
3. Registered with a registered tax number
4. Must be based and operational in South Africa
5. The entrepreneur must have exclusive rights and IP over the business.
Then Uprise.Africa works with entrepreneurs to create a pitch that will showcase their business and the investment opportunity. If the opportunity is interesting then the "crowd" will invest.
In terms of promotion and marketing, campaign promotion is a collaboration between the entrepreneur and Uprise.Africa.
Uprise.Africa also uses online and real-world networks to promote campaigns as well as using traditional media channels.
There is a fee of R23000 (including VAT) if businesses wish to use Uprise.Africa. The fee is fully refundable if the crowdfunding campaign is successful. 50% of the fee will be refunded if Uprise.Africa decides not to take the deal live on the platform.
The fee that Uprise.Africa charges covers:
1. Legal due diligence: R5000
2. Financial due diligence: R5000
3. Prospectus: R8000
4. Admin: R2000.
- BUSINESS REPORT ONLINE