Getting funding is seen by the startup community as the entry point to starting a business. As a result venture capitalists and funding institutions are inundated by funding applications from startup founders.
In the African continent accessing funding is not that simple. Venture capitalists are a rare breed and funding institutions are risk averse. This leaves startup founders with limited options to access funding. Only a few have access to funding and the rest is struggling.
To get funding one has to turn to the crowds, ordinary people and real backers of the solutions a process known as CrowdFunding.
A practice of funding a project or venture by raising monetary contributions from a large number of people, today often performed via internet. It is an alternative finance, which has emerged outside of the traditional financial system.
The crowdfunding model is based on three types of actors: the project initiator who proposes the idea and/or project to be funded; individuals or groups who support the idea; and a moderating organization (the “platform”) that brings the parties together to launch the idea.
Kickstarter, is one of the well known crowdfunding online platform. In South Africa, ThundaFund has emerged as the leading crowdfunding platform in South Africa. Recently it launched an improved website.
According to its founder Patrick Schofield, crowdfunding is “the democratisation of financing for entrepreneurs”. He believes that crowdfunding is ”the next-gen solution to Africa’s development agenda.”
Since being founded in June 2013, Thundafund has successfully crowdfunded over R7 million.
Now, with it’s mobile friendly and simple website ThundaFund is aiming to enable more entrepreneurs to access funding.
In the next few days,iDEATE team will be testing the new ThundaFund platform and share findings with the entrepreneurship community.
You can also test drive ThundaFund with your new project here.