Two African businesses raised over R6 million through equity crowdfunding in just six weeks, exceeding their minimum investment goals. The fundraising was handled by GoGetta, a recently formed equity-based crowdfunding platform dedicated exclusively to African enterprises.
The KwaZulu-Natal-based Shuthuka Flagship Farm, which grows macadamia nuts, has raised R4 million for growth. Manufacturer of customized trailers Trailored, based in Gauteng, raised R2.275 million. Within six weeks of listing on GoGetta, both businesses had raised their desired amount of money.
GoGetta co-founder Sthembiso Zwane states, “Equity crowdfunding is growing in popularity internationally, as it gives investors access to businesses in exchange for shares. GoGetta offers access to retail and institutional investors for qualifying entrepreneurs. Investors can take comfort that businesses listed on GoGetta undergo a robust due diligence process and are vetted by experienced startup and financing professionals. In fact, of the 256 businesses reviewed for a listing since January 2022, just four were approved for listing on the platform – which is a good indication of their quality.”
Local and foreign retail, angel, and venture capital investors can use GoGetta to select from pre-screened opportunities and quickly and securely invest amounts of R1,000 or more to acquire shares in various African companies.
According to Shuthuka CEO Warwick Blamey, the funds will be used to expand the company’s operations and boost exports. “GoGetta provides so much more than a platform to showcase the business and attract investors. The team has given us great advice and leveraged its extensive network. GoGetta did a lot of work behind the scenes to find the right investor fit.”
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Hlanganiso Maluleke, Trailored CEO, added, “My father started this business in his garage. Together, we have driven significant growth and we are ready for the next phase of our expansion. The GoGetta team’s years of experience with startups has already added so much value in terms of sound advice and strategic direction including opening the doors for further capital.”
WDB Growth Fund, a subsidiary of WDB Investment Holdings, provided a significant portion of Shuthuka’s funding and also invested in Trailored. Individual investors or the crowd funded the remaining. According to WDB Growth Fund Investment Committee member Oupa Monamodi, “The decision to fund these businesses for an equity stake was made much easier by the extensive due diligence carried out by GoGetta ahead of any engagement with the entrepreneurs. The verified and credible information on each of the businesses made it easy to see the compelling case for funding both Shuthuka and Trailored.”
The Equity Crowdfunding
Equity crowdfunding is a novel way for startups to raise funds from the general public. Startups can use equity crowdfunding platforms like GoGetta as a marketing tool to attract investors rather than relying on banks and venture capitalists.
GoGetta is looking for appealing businesses to list on the platform that want to raise investments ranging from R1.5 million to R10 million in exchange for stakes in their companies. Before a fundraising agreement is signed, all businesses featured on the platform must pass a due diligence process conducted by GoGetta’s experienced investment committee. Only African companies can list on the platform, but investors can be located anywhere in the world.
Grovest, a reputable administrator in the small-cap alternative investment market in South Africa, powers GoGetta. Grovest has been investing in startups for over ten years and currently manages over R3.5 billion in assets. The Financial Sector Conduct Authority oversees GoGetta (FSCA).
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About GoGetta
High-quality African firms are having difficulty obtaining funding from conventional lenders like banks. It’s time for Africa to participate in the billion-dollar global economy of crowdfunding. GoGetta provides a solution to these financial problems and helps African entrepreneurs reach their full potential. Our website features some of the top investment possibilities from all around the continent, making Africa an exciting growth narrative for investors.