What if you could fund
your dreams right
now?
Many South Africans dream of
getting their concepts off the
ground, but they lack the funding to
make it reality. Too often their ideas
are put on the back-burner for 'one
day' - when they have accumulated
enough wealth; when they finally
secure that loan; or when the
right investor shows up carrying a
suitcase filled with cash.
Enter crowdfunding, fast becoming
a viable option for investors and
business owners – offering a means
for start-up businesses to seek
capital, and for investors to look
for places to invest their money
and time.
WHAT IS CROWDFUNDING?
Subhas Shah, project and
community manager at one
of South Africa's biggest
crowdfunders, Thundafund.com,
defines crowdfunding as “an
online lever allowing the public to
bring projects to life, financially
and collectively.”
In short, it can be defined as
funding by the people – a model
that aligns well with the African
concept of Ubuntu (loosely
translated as the spirit of
community and togetherness).
The concept is based on the
crowdfunding model that has
experienced extraordinary uptake
in the Americas and Europe.
Thundafund is one of many such
sites emerging in South Africa,
joining the likes of StartMe
and Fundfind.
At its core, Thundafund.com allows
a large number of people to each
invest small amounts into a project
or idea. In essence they pre-sell
'rewards' related to their project
to backers in exchange for their
contribution. Small amounts soon
add up to the capital required,
simply due to the crowd factor.
Although it’s a relatively new
concept in South Africa, it has taken
off. According to Shah, Thundafund
has already brought in R4 771 358
from 5 217 people, successfully
funding 128 projects since its
founding in June 2013.
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ISSUE 6 – SEPTEMBER 2015
AN INVESTOR'S
PERSPECTIVE
As a result of this innovation,
iKubu was acquired by navigation
company Garmin earlier this year.
Keet van Zyl, co-founder and
director of Knife Capital, has
invested some of his own time
and money in crowdfunding
projects he believes in – including
Kenya’s BRCK through Kickstarter,
and local entrepreneur Hannes
van Rensburg’s upcoming book
through Publishizer. In the book,
Cash in Cash out, Van Rensburg
tells the incredible story behind
the rise of Fundamo, the mobile
payment company he sold to Visa
for $110 million.
“Crowdfunding involves large
numbers of people collectively
investing smaller amo [