The top 7 crowdfunding platforms in South Africa
Are you looking for a fresh and innovative way to get your business off the ground?
Look no further! We've rounded up the top 7 crowdfunding platforms in South Africa that are sure to get your entrepreneurial dreams soaring. From Thundafund to GoGetta, these platforms offer a variety of options for raising capital and connecting with investors. So sit tight and get ready to explore the exciting world of crowdfunding!
Platform #1: Angel Investment Network
Angel Investment Network is a South African platform that connects entrepreneurs with angel investors, offering an opportunity to secure funding for innovative and promising business ideas. The platform's main goal is to bridge businesses seeking investment and investors with the capital, contacts, and knowledge to help them succeed.
It provides a range of services, including crowdfunding, which allows entrepreneurs to raise funds for their businesses by receiving small contributions from many people. Angel Investment Network offers crowdfunding services for various businesses, including startups, small businesses, and large companies.
The loan amounts range from a few thousand Rand to several million Rand, depending on the size and needs of the business, and the loan terms can be flexible and customised to meet the unique needs of each business.
The platform provides access to a large network of investors, increases the chances of receiving funding, offers marketing and promotional support, and ensures that all personal and financial information is confidential. Entrepreneurs can showcase their business pitches, receive valuable feedback from experienced investors, and have access to a team of experts who monitor all transactions to prevent fraud and ensure that all investments are legitimate.
Platform #2: BackaBuddy
BackaBuddy is a crowdfunding platform that stands out for its focus on social impact, transparency, and accountability, as well as its comprehensive support and resources for campaign creators.
The platform, founded in South Africa in 2007, has helped thousands of businesses, individuals, and non-profit organizations raise funds for a diverse range of campaigns, including medical expenses, education, animal welfare, and environmental initiatives. BackaBuddy takes transparency and security seriously, keeping all funds raised in secure trust accounts and providing regular updates on the progress of campaigns.
The platform offers user-friendly tools for creating and managing campaigns, as well as marketing and promotion support, payment processing, and detailed reporting and analytics.
To launch a campaign on BackaBuddy, it must meet certain eligibility requirements, including a clear and specific fundraising goal, a realistic timeline, a compelling story and message, and compliance with all relevant laws and regulations. BackaBuddy is an excellent choice for businesses, entrepreneurs, and individuals seeking to turn their dreams into reality and make a difference in their communities.
Platform #3: GoGetta
GoGetta is an internet-based crowdfunding platform that facilitates equity-focused crowdfunding for African venture capital prospects. Its objective is to connect entrepreneurs with investors worldwide to create investment prospects for the continent.
GoGetta's team comprises diverse professionals with experience in different fields who share a passion for Africa's growth and its entrepreneurs, and they’re committed to generating investment opportunities for international investors while also supporting local businesses.
The platform has a minimum investment requirement of just R1,000, making it an affordable option for investors who want to be part of the continent's entrepreneurial ecosystem. Grovest provides the technology behind GoGetta's crowdfunding services, ensuring that the platform is trustworthy and reliable. Entrepreneurs who join GoGetta can benefit from its crowdfunding services by gaining access to a large pool of potential investors worldwide.
Platform #4: Jumpstarter
Jumpstarter is a non-profit crowdfunding platform that supports entrepreneurs, businesses, and creatives in getting their projects funded. Jumpstarter charges fees to For-Profit, non-profit organisations, ISASA, or RSA Public School projects that are successfully funded. Jumpstarter's funding method is all-or-nothing, which means that if a project fails to reach its funding goal, no money changes hands.
To launch a campaign on Jumpstarter, businesses will typically need to provide project plans, business registration and legal documents, bank account information, product prototypes or samples, high-quality images or videos, marketing materials, a detailed breakdown of expenses, contracts or agreements with suppliers or partners, terms and conditions for backers, and personal identification documents for the campaign owner. A successful Jumpstarter campaign requires a compelling story that engages the audience, clear language, a start and end date, and documentation of the project.
Platform #5: The People's Fund
The People's Fund is a crowdfunding platform that focuses on supporting black-owned and -led businesses in South Africa. It was founded in 2019 by Vuyiswa Nzimande, an entrepreneur and former investment banker, who wanted to democratize access to funding and provide an alternative to traditional financing methods. The People's Fund welcomes businesses from various industries and offers a range of investment options, including equity, debt, and reward-based funding.
Investors on the platform can support black-owned businesses and contribute to economic transformation in South Africa while receiving updates on the progress of the businesses they have invested in. The People's Fund also provides education and support to entrepreneurs to help them prepare for crowdfunding and increase their chances of success.
To be eligible for crowdfunding on The People's Fund, a business must be registered in South Africa, majority black-owned and operated, have a viable business plan, demonstrate social impact or economic empowerment potential, and be able to provide regular updates to investors on the progress of the business.
Platform #6: Thundafund
Thundafund is a crowdfunding platform in South Africa that was founded in 2014 by Patrick Schofield and his team to cater specifically to South African entrepreneurs and creatives. The platform provides users with the tools and resources they need to bring their ideas to life, with a mission to empower people to create a better South Africa.
Thundafund's commitment to providing an easy-to-use platform has helped thousands of South Africans raise the funds they need to achieve their goals, and its reputation as one of the most reliable and trustworthy crowdfunding platforms in South Africa continues to grow. Thundafund's rewards-based system is a fun and interactive way to support creative and innovative projects while also getting some cool rewards in return.
The platform has helped fund a variety of businesses, business ideas, and projects, ranging from waste management and recycling services to sustainable, locally sourced, and organic food products.
To go live on Thundafund, a project must meet certain requirements to ensure it aligns with the platform's values and goals, including being based in South Africa, having a clear and specific goal, being unique and innovative, and being authentic and transparent.
Platform #7: Uprise Africa
Uprise Africa is a crowdfunding platform launched in 2017 that allows South African businesses to raise capital from a community of investors. The platform offers due diligence, escrow services, legal support, and campaign support to ensure that businesses have a successful crowdfunding campaign.
Uprise Africa's goal is to democratize access to funding for South African businesses and promote economic growth and development in the country. They partner with organizations such as Silicon Cape, DLA Piper, Startupbootcamp Africa, and the Western Cape Government to support South African businesses.
Uprise Africa offers crowdfunding opportunities to a wide variety of businesses, particularly those that have a positive impact on South Africa's economy and society. They work with businesses in sectors such as technology, renewable energy, agriculture, education, and healthcare. However, any business that has a compelling vision, a strong team, and a viable business plan can apply to use its crowdfunding platform.
To apply for crowdfunding on Uprise Africa, the business must be registered and operate in South Africa, have a legal structure recognized in South Africa, have a well-developed business plan, provide up-to-date financial statements, create a pitch deck that clearly communicates its value proposition, market opportunity, team, and financials, set a realistic crowdfunding target, undergo due diligence by Uprise Africa, and comply with all relevant laws and regulations related to crowdfunding and securities in South Africa.
Crowdfunding is not a guaranteed source of funding, and businesses that use Uprise Africa's platform should expect to contribute to the growth and development of the South African economy by creating jobs and driving innovation.
And that’s that!
Crowdfunding platforms are an excellent way for entrepreneurs to raise funds for their projects. With the various options available in South Africa, it can be overwhelming to choose the right platform.
However, each platform on our list offers unique features that cater to different types of projects and businesses. We encourage you to review each provider's profile that we have on our site and carefully consider the benefits and drawbacks of each before making a decision. With the right crowdfunding platform, you can turn your dreams into reality and get the financial support you need to succeed.