Two African businesses have reached their minimum funding goals, raising over R6 million in just six weeks through equity crowdfunding. The fundraise was facilitated by GoGetta, a newly launched equity-based crowdfunding platform focused exclusively on African businesses.
Shuthuka Flagship Farm, a macadamia farming operation based in KwaZulu-Natal, raised R4 million funding for expansion. Trailored, a Gauteng-based manufacturer of customised trailers, raised R2.275 million. Both businesses reached their target funding within six weeks of listing on GoGetta.
Sthembiso Zwane, GoGetta co-founder, says, “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 international retail, angel and venture capital investors can select vetted opportunities on GoGetta and invest quickly and securely amounts of just R1,000 or more to own shares in various African businesses.
Shuthuka CEO, Warwick Blamey, says that the funding will be used to grow the business and increase 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.”
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.”
Venture capital group WDB Growth Fund, a subsidiary of WDB Investment Holdings, provided a substantial portion of the funding for Shuthuka and also invested in Trailored. The balance was funded by individual investors, or the crowd. Says Oupa Monamodi of WDB Growth Fund’s Investment Committee, “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.”
Equity crowdfunding is an innovative way for startups to raise capital from the public. Instead of relying on banks and venture capitalists, startups can use equity crowdfunding platforms like GoGetta as a marketing tool to attract investors.
GoGetta is seeking attractive businesses to list on the platform that want to raise investments between R1.5 million and R10 million in exchange for stakes in their businesses. All businesses featured on the platform must satisfy a due diligence process carried out by GoGetta’s experienced investment committee before a fundraising agreement is concluded. Only African businesses can list on the platform, but investors can be located anywhere.
GoGetta is powered by one of South Africa’s most respected administrators in the small cap alternative investment space, Grovest. With a track record of over 10 years in entrepreneurship funding, Grovest has assets under administration of over R3.5 billion. GoGetta is regulated by the Financial Sector Conduct Authority (FSCA).