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)

trustrelationships,

economicpredictabilityand execution

Entrepreneurial CultureCo-working spaces,incubators and accelerators,peer-to-peer mentorship,oversight, investorrelations/reporting

Community engagementSocial network, socialvetting, startup events &culture of trust

TechnologyInternet access, regulatedportals to facilitate theprocess, technology to facilitate the ongoing communication and new services to facilitate transactions

Economic RegulationsEnabling policy fromincorporation to bankruptcy, aregulatory framework forcrowdfund investing, policy toenable 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%

0 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 abusiness.

Rewards Crowdfunding

Funds are raised in exchange for rewards.

Donation Crowdfunding

All funds raised is in the name of goodwill andcharity.

Asset-based Crowdfunding

Funds are raised for specific equipmentneeds/assets, and returns are paid on a month tomonth leasing bases.

Crowdfunding

Equity Rewards DonationAsset-basedthepeople.co.za

Impact

The First Equity Crowdfunding Platform in Africa South AfricaAlternative 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 EnablesShowcases

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 InvestRaise 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 Diligence3

4 Subscription Agreement & Term Sheet

Campaign Preparation 5

6 Filling the prospectus with CIPC

On-boarding process

Revenue Model

AcceleratorsMarketing

ActivityInfluencers

Business application on Uprise.Africa

R23,000 application fee

Uprise.AfricaOn-boarding and review process

Deals go live on Uprise.Africa

1 2Deals 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 CollectiveTotal raised: £2 million.Platform: Seedrs.Month: April.What is it? Pay-as- you-go fitness class provider

GripItTotal raised: £2 million.Platform: Crowdcube.Month: March.What is it? Heavy duty plasterboard fixings

Warwick AudioTotal raised: £2.1 million.

Platform: SyndicateRoom.

Month: July.

What is it? Audio technology developer.

The biggest crowdfunding campaigns of 2017 (UK)

IntegumenTotal raised: £2.1 million.Platform: Crowd For Angels.Month: April.What is it? Personal health company.

JustParkTotal raised: £2.2 million.Platform: Crowdcube.Month: December.What is it? Helping drivers find a parking spot.

DenTotal raised: £2.2 million.Platform: Seedrs.Month: March.What is it? Smart-home products.

The biggest crowdfunding campaigns of 2017 (UK)

DueDulTotal 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.

VitaMojoTotal 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