What African Startups Can Achieve from the GoGetta Equity-based Crowdfunding Platform

What African Startups Can Achieve from the GoGetta Equity-based Crowdfunding Platform

Angel and Venture Capital investors from South Africa and beyond can now choose from vetted prospects to make rapid, secure investments of R1000 (approximately $60) or more to acquire shares in a variety of African businesses. The digital crowdfunding platform, GoGetta makes this possible in order to help early-stage African startups raise money.

Quality African entrepreneurs struggle to get funding from conventional lenders like banks, according to Sthembiso Zwane, co-founder of GoGetta. Africa needs to participate in the billion-dollar global crowdfunding business.

GoGetta actively seeks out startups looking to raise between R1.5 million and R10 million in exchange for investments in the form of ownership stakes. Before a services and funding agreement is finalized, each business included on the platform must pass the experience investment committee of GoGetta’s due diligence procedure. The portal only allows African businesses to list, yet investors come from all over the world.

Grovest, a reputable administrator in the small cap alternative investment market in South Africa, powers GoGetta. Grovest has been investing startups for over ten years and currently manages over R3.5 billion in assets.

The crowdfunding platform is sector-neutral and accepts applications from all companies in return for shares from a variety of industries. Fintech, agriculture, consumers, energy, businesses, healthcare, retail, and other sectors are among them.

GoGetta co-founder Leat Sacharowitz added that the company has already signed up qualified businesses in South Africa and will be seeing substantial interest from enterprises on the African continent that are ready for investment.

Leat Sacharowitz Co-founder of GoGetta

Businesses must submit audited financial statements, year-to-date management accounts, three-year financial forecasts, and a thorough business strategy in order to be eligible for the platform. Low listing fees are charged up front, and compliance and reporting fees are not charged until the company has received its desired level of investment.

What this Means for African Startups

Funding gap has necessitated the creation of a formal strategy for possible funders. A particular type of investor is catered to by each crowdfunding platform.

In Africa, crowdfunding is still in its infancy, and there are still some skepticism toward online activities, particularly those involving money. To dispel suspicion, crowdfunding projects must be thoroughly understood.

Crowdfunding platforms have introduced a variety of payment alternatives suited to the nations in which they operate. This is part of efforts to minimize client friction during the investing process.

Through one-on-one phone calls, manuals, and blog articles, several of the crowdfunding platforms itself advise creators on how to best market campaigns and draw investment.

Equity-based crowdfunding, according to Sthembiso Zwane, is particularly appealing in the African environment, where conventional community investing is prevalent and formal financial institutions have a low penetration rate. In Africa, where the younger generation is leading the way in the digital economy, digital finance and mobile money are widely used. For both investors and companies looking for finance, GoGetta’s platform is a straightforward and secure digital entry point to great prospects.

African businesses would likely have easier access to extra financing as crowdfunding grows throughout the continent, allowing them to diversify their product lines and hire more entrepreneurs.