South African equity crowdfunding platform Uprise.Africa has raised an undisclosed investment from Silicon Valley-based VC firm Nexxus Ventures.
Launched in October last year, Uprise.Africa aims to help innovative local businesses raise capital while gaining market validation. Two campaigns have been hosted on the platform to date – one failing to gain any traction; the other exceeding its raising target.
Uprise.Africa said while the investment secured from Nexxus Ventures will not be disclosed, it is based on a ZAR60 million (US$4.2 million) valuation of the company,
The investment will enable the startup to launch new deals on its platform in the coming months; with Uprise and Nexxus to partner on identifying high-potential South African businesses seeking funding for expansion.
“The Nexxus investment enables Uprise.Africa to test the commercial viability of our offering. Over the next few months, we will be releasing a variety of deals that will give everyday South Africans the chance to become shareholders in SME South Africa,” said Uprise.Africa chief executive officer (CEO), Tabassum Qadir.
“It is important that equity crowdfunding is available to South African business. This form of capital raising is especially attractive to businesses, that have a history of engaging with their customers, but find that banks aren’t willing, or able to lend to them.”