South Africa has for a long time been a frontrunner in the Sub-Saharan Africa startup scene, pioneering business models and startups.
StartMe, a website founded by Ben Botes and Lourie Nel has launched in South Africa and aims to bring the corwdsourced funding model that has become popular in the United States to South Africa.
Through StartMe, South African entrepreneurs can create projects, indicate a funding goal and solicit for funding from users who serve as project investors.
Though StartMe sounds similar to startups with similar business models in the U.S. such as Kickstarter and Indiegogo.
On StartMe, project creators keep pledges made by investors if at least 50% of the goal amount is raised. In addition, for projects that don’t achieve their funding goals, project creators get charged 9% of the money raised. Project creators that hit their target are charged 5% of the money raised.
“There are numerous crowdfunding sites around the world and a whole range of different practices on when the entrepreneur can claim the monies pledged to them,” StartMe Founder, Ben Botes said.
To pledge money, investors are required to buy “investment credits” on StartMe.
To learn more about StartMe, visit www.startme.co.za
You can also check out a video below on StartMe.