Crowdfund Is An South African Start-up Which Aims To Get Entrepreneurs Funded

Crowdfund is a venture capitalist start-up from South Africa which has made a small impact on the African cyberspace. Crowdfund promises to invest in local South African entrepreneurs by raising money through a community based model.

The idea in their own words is that

1. 1000 people get together and invest R1,000+ each by pooling the money into the Crowdfund.
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2. 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
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3. Economies of scale play a huge role in getting maximum bang for each Rand
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4. Once a workable prototype is developed, the formal Venture Capital network is approached for further funding, and the Crowdfund most probably cashes out

The idea is unique and seems to fit the  the South African tech scene. The best part being that since the risk is spread over a large number of investors if a company fails, then the investors won’t make painful losses.

The Crowdfund board who will be making the choices of who gets funded and who won’t, include

• Eve Dmochowska
• Heather Ford
• Vinny Lingham
• Justin Spratt
• Elan Lohmann
• Craig Blumenow
• Brett Haggard

The board might be up to the task, but let us wait and see what develops.

 

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