Equity Crowdfunding enables the general public to fund start-up companies and small businesses in return for equity. In simple terms, people give money to a business and receive a share of ownership of that business. If the business succeeds and its value goes up or is sold, such investors get a share of the profits or capital gains.
Equity Crowdfunding enables the general public to fund start-up companies and small businesses in return for equity. In simple terms, people give money to a business and receive a share of ownership of that business. If the business succeeds and its value goes up or is sold, such investors get a share of the profits or capital gains.
We welcome any person from any part of the world who is passionate about Africa and is excited about the continent’s unraveling potential.
I am not African because I was born in Africa but because African was born in me.
Part of our motivation for building our platform was to encourage and enable people who call Africa home, people of African origin or ancestry living outside the continent, irrespective of their citizenship, nationality, or how recent or distant their ties to Africa are, to support innovators who are building an African future where access to the fundamental human needs and perhaps prosperity is within everyone’s reach.
Discover opportunities to create wealth while making a huge long-term impact in tackling Africa’s biggest challenges.
Although each project is qualified on an individual basis, we generally accept businesses that at least have a tested prototype or service model and have developed a business plan. Usually, such businesses funding stage ranges from Seed to Early-Stage (soft Series A) funding for any of the following activities:
Funding usually ranges from as low as USD $10,000 to $5 million.
Our definition of what qualifies as an African business hinge on where the “economic value” of the company ends up — at least for the foreseeable future, that is. Generally, the three questions that help make that determination are:
AfriCrowd provides African innovators a friendly source of capital, both human and financial.
The fundraiser creates a campaign and provides detailed information about their product, company, team, qualifications, track record, valuations, and the amount they are seeking, as well as the equity available.
Our Trust & Safety team verifies the details of the company and the campaign to ensure the safety of our users, to maintain the integrity of our platform, and to ensure compliance with applicable regulations in the fundraiser's country and in the United States. Through our Fundraiser Services, we can help remedy most issues as needed to qualify campaigns for fundraising.
At this stage, we encourage investors to learn as much as possible about the project and the people behind it by reviewing the story, team profiles, updates, comments, asking questions, and independent research to get a good sense of what you’re backing and to feel confident in your decision.
Once an investor decides to fund the project, they may use a credit, debit card, or wire to submit their contribution based on the preset amounts levels or a custom amount. Investors can submit contributions more than once.
After verifying each contributing investor, we facilitate the formation of a holding company. Investors nominate a trustee committee usually from among themselves to manage the investment fund. Equity certificates are issued. We transfer the raised funds (minus 5% fee, 2.9% + 0.30 credit card processing fee, and any fees incurred setting up) to the investment fund holding company.
The holding company's committee receives periodic reports and audits, which they in turn share with all members. If agreed upon, they may also become members of the board of advisors for the beneficiary company and may assist as necessary. They are also responsible for extracting and distributing returns (capital gains, dividends, profit share) to all members.