StartMe gives SA entrepreneurs crowdfunding
Thursday, July 26, 2012
South African entrepreneurs, who have been hard pressed to find funding via traditional means such as bank loans, can now take advantage of a new funding mechanism in South Africa – StartMe.co.za.
Access to seed capital continues to be one of the greatest challenges facing South African entrepreneurs, particularly in light of banks keeping a tight control on lending while financial markets are still in turmoil. As a result, more and more budding entrepreneurs are turning to alternative means of funding.
Started by South African entrepreneurs Ben Botes and Lourie Nel, StartMe is the next generation of business investment and is an Internet-based funding portal which allows a number of small investors to network and pool resources to finance projects, businesses and other ventures. Specifically, this involves raising capital by receiving small investments from a large cross-section of people in an Internet community.
Commonly referred to as crowdfunding, the concept has gained international popularity and interest in recent years as everyone, from non-profits and music groups to politicians and artists, look for alternative means of financing for their endeavors.