Web Application Design, Development & Innovation in Cape Town

South Africa has a very limited “Angel Funding” network to help online start ups develop prototypes of their products. Most venture capitalists are only interested in investing large sums of money in ideas that have proven to generate revenue. The only way you are able to invest your money into an online start-up in South Africa is if you had a very big amount of it or knew the start-ups and could act as an angel investor. Being an angel investor still required quite a big sum of money. Eve D has just turned South African start-up investing on it’s head with Crowdfunding. Here is how you can get involved…

How does the Crowdfund work?

• 1000 people get together and invest R1,000+ each by pooling the money into the Crowdfund.
  .
• The Crowdfund board approves to use the fund to finance between 10 – 20 teams with excellent ideas, and helps convert the ideas into workable prototypes, in exchange for equity
  .
• Economies of scale play a huge role in getting maximum bang for each Rand
  .
• Once a workable prototype is developed, the formal Venture Capital network is approached for further funding, and the Crowdfund most probably cashes out.

So far 122 investors have pledged nearly R500 000 into the crowdfund which in the near future will allow about 10-20 ideas to flourish into workable prototypes. If you’d like to be part of the Crowdfunding investing process all you need is R1000 to R10 000 and apply here.

I’ve added my name to the list of would-be micro-investors (can it be called micro-investing?), have you?

Some people have expressed concern in having that many investors but I don’t believe it should be perceived as many but only one and that is Crowdfuning.co.za.