Crowdfunding in South Africa If you want to become a billionaire, - - PowerPoint PPT Presentation

Equity Crowdfunding in South Africa: A New Dawn

Crowdfunding in South Africa

If you want to become a billionaire, help a billion people

• Dr. Peter H. Diamandis

2014 2015 2016 597,14 762,52 738,9

Value of funds raised through crowdfunding worldwide from 2014 to 2016 (in million U.S dollars)

AMERICAS 51.33% EMEA 21.34% APAC 28.33% 2016:Americas was valued at $26.64 billion By 2021 APAC is expected to reach $42.39 billion EMEA is currently growing at CAGR of 14.7%

Global Snapshot

Drivers of Crowdfunding (Investing)

trust relationships, economic predictability and execution Entrepreneurial Culture Co-working spaces, incubators and accelerators, peer-to-peer mentorship,

• versight, investor

relations/reporting Community engagement Social network, social vetting, startup events & culture of trust Technology Internet access, regulated portals to facilitate the process, technology to facilitate the ongoing communication and new services to facilitate transactions Economic Regulations Enabling policy from incorporation to bankruptcy, a regulatory framework for crowdfund investing, policy to enable North-South flows

49% 74%

Social Media Penetration

Latin America/Caribbean Potential $11B

Market Potential

Africa Potential $2.5B South Asia Potential $4.9B East Asia & Pacific Potential $8 B China Potential $47.6 B MENA Potential $5.6 B Europa/Central Asia Potential $13.8 B

26% 38% 38% 43% 52%

50 100 150 200 250 300 350 400 United States France Netherlands Germany Italy India South Africa China Estonia

# CONFIRMED PLATFROMS

Investing crowdfund platforms

Crowdfunding

Equity Crowdfunding

Funds are raised in exchange for an Equity share in a business.

Rewards Crowdfunding

Funds are raised in exchange for rewards.

Donation Crowdfunding

All funds raised is in the name of goodwill and charity.

Asset-based Crowdfunding

Funds are raised for specific equipment needs/assets, and returns are paid on a month to month leasing bases.

Crowdfunding

Equity Rewards Donation Asset-based

thepeople.co.za Impact

The First Equity Crowdfunding Platform in Africa South Africa

Alternative Funding | Disruptive Innovation | Regulatory Technology

Uprise.Africa enables: Funding Readiness | A Funding Platform | Ongoing Reporting By providing: Legal, Financial & Regulatory Compliance | A Technology Platform

Links Enables Showcases Capital to grow businesses Marketing & Awareness Gain Validation Acquire Brand Ambassadors Funding readiness Links to services Access to support network Funding platform

Why Uprise.Africa?

Equity Crowdfunding

How it works

• 1. Entrepreneur

has an idea and needs capital.

• 2. The

Entrepreneur applies online on Uprise.Africa.

• 3. Uprise.Africa reviews

viability, assisting with legal, compliance and pitch prep.

• 4. Entrepreneur’s

pitch goes live on Uprise.Africa.

• 5. The crowd invests

into the business in exchange for equity.

• 6. If the project reaches its

tipping point (minimum requirement for viability), share certificates are issued.

• 7. The cash is paid out to the

Entrepreneur and Uprise.Africa facilitates reporting back to the investors/crowd.

Drifter Brewing Company

• R1 mil raised in the first 24 hours
• R3 mil raised in the first 30 days

Goal: R3,900,000

• Small to medium enterprise
• Capital raise goal of between R3,000,000 and R50,000,000
• Any industry
• Operational for ideally 2 years
• All legal documents must be in order
• Business must be CIPC registered with a registered tax number
• Business must only be operational in South Africa
• Entrepreneur must have exclusive rights and IP over the business
• Business must be generating revenue
• Business must be have already or is willing to undergo an evaluation

Basic profile of Uprise.Africa SME

Why Uprise.Africa?

• Visit our website
• Sign up in 3 easy steps.
• Browse through multiple, locally owned

startups

• We provide the necessary FICA

documentation.

• We will report on how the business is

doing after the raise.

Easy to Invest Raise Capital

• Visit our website
• Sign up in 3 easy steps and start your

pitch.

• We assist in all legal and compliance

requirements.

• Help market your campaign
• And ensure all necessary FICA

requirements are fulfilled.

1

Application & Yue Diligence

2

Fundraising Agreement Legal and Financial Due Diligence

3 4

Subscription Agreement & Term Sheet Campaign Preparation

5 6

Filling the prospectus with CIPC

On-boarding process

Revenue Model

Accelerators Marketing Activity Influencers

Business application on Uprise.Africa R23,000 application fee Uprise.Africa On-boarding and review process Deals go live on Uprise.Africa 1

2

Deals that reach tipping point 5 - 8% commission Crowd 1 Crowd 2 10% carry

Organisations VCs

R20,000 application fee

8% commission on

successful raises

10% carry

Sign-up Process

The biggest crowdfunding campaigns of 2017 (UK)

Core Collective

Total raised: £2 million. Platform: Seedrs. Month: April. What is it? Pay-as- you-go fitness class provider GripIt Total raised: £2 million. Platform: Crowdcube. Month: March. What is it? Heavy duty plasterboard fixings Warwick Audio Total raised: £2.1 million. Platform: SyndicateRoom. Month: July. What is it? Audio technology developer.

The biggest crowdfunding campaigns of 2017 (UK)

Integumen Total raised: £2.1 million. Platform: Crowd For Angels. Month: April. What is it? Personal health company. JustPark Total raised: £2.2 million. Platform: Crowdcube. Month: December. What is it? Helping drivers find a parking spot. Den Total raised: £2.2 million. Platform: Seedrs. Month: March. What is it? Smart-home products.

The biggest crowdfunding campaigns of 2017 (UK)

DueDul Total raised: £2.6 million. Platform: Venture Founders. Month: September. What is it? Due diligence tool providing business, accounting and director information. Bolt Mobility Total raised: £2.8 million. Platform: Seedrs. Month: September. What is it? All-electric scooter with smartphone connectivity. VitaMojo Total raised: £3.2 million. Platform: Crowdcube. Month: May. What is it? A cashless health-focused, restaurant where you can pre-order your customised meals.

Uprise.Africa will democratise funding by disrupting the current funding landscape in South Africa allowing for inclusive growth.

Contacts