African businesses seeking financial assistance are offered the opportunity to raise up to R10 million in capital on equity-based crowd-funding platform GoGetta.
The platform, which launched in August locally, is on a mission to find quality African businesses with growth prospects. It aims to connect them to local and international angel investors and venture capital investors that are able to invest an amount of R1 000 or more to own shares in various African businesses.
The platform, powered by Grovest, an administrator in the small cap investment space, brings African venture capital opportunities to investors worldwide. With a track record of over 10 years in entrepreneurship funding, Grovest has assets under administration of over R3.5 billion.
According to a statement, to qualify for the platform, businesses need to submit audited financial statements, year-to-date management accounts, three-year financial forecasts and a detailed business plan.
Initial listing fees are low, and compliance and reporting fees only become due when the business reaches its target funding, says GoGetta.
This evening, GoGetta will host a closed event where investors and funders will be introduced to the businesses listed on the platform.
Sthembiso Zwane, co-founder of GoGetta, comments: “Quality African businesses are struggling to raise capital using traditional financiers such as banks.
“Crowd-funding is a billion-dollar global industry and it’s time for Africa to weigh in. GoGetta is a solution to these funding issues and unlocks the potential of Africa’s entrepreneurs. Africa is an exciting growth story for investors and our platform showcases some of the best investment opportunities from across the continent.”
According to Zwane, the platform seeks to solve two investment problems. Firstly, it provides a platform for vetted small businesses to access capital and gain recognition through listing on the website.
Secondly, the platform provides a secure way for investors to carefully select and put money into their ventures of choice.
Only African businesses can list on the platform, but investors can be located anywhere.
All businesses featured on the platform must satisfy a due diligence process carried out by GoGetta’s experienced investment committee, before a services and fundraising agreement is concluded.
“GoGetta is regulated by the Financial Sector Conduct Authority, giving investors confidence in our top-notch compliance and governance capability,” says GoGetta co-founder and CEO Jeff Miller.
“Africa’s go-getters will also benefit from guidance in formalising their businesses with a smarter way to access capital to fund growth while retaining control.”
Other than transaction fees, investors pay no fees, and they receive quarterly reports to track the performance of their investments, according to Miller.
GoGetta provides comprehensive information to assist investment decisions, including financial information and a company pitch deck.
For further information, visit the GoGetta website.
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